Cloud Compliance and Cashless Future: Bangladesh Eyes Local Data Sovereignty and Low-Cost Payment Systems
Bangladesh is moving toward the implementation of a local cloud infrastructure for its financial sector, in alignment with national data protection laws that prohibit the use of public cloud servers for handling personal data. This initiative aims to foster local entrepreneurship and skill development, with similar practices already adopted by countries like Saudi Arabia, Qatar, and Nigeria across both public and private sectors.
“Following this path, we are soon going to launch a local cloud system for the financial sector,” said Deb Dulal Roy, Executive Director of Bangladesh Bank, during a seminar on the concluding day of the four-day Bangladesh Investment Summit held on Thursday. “At the same time, we are planning to launch an interoperable payment solution by 2026, which will be the most cost-effective solution available.”
Roy added that Bangladesh Bank has maintained a flexible regulatory stance to support the country's financial sector and local entrepreneurs. He cited that in 2010–12, several banks were permitted to adopt cloud services to improve service quality and reduce costs. However, in response to repeated requests, the government decided to draft a cloud policy in 2020—though it is yet to be implemented.
“Our advisors have informed us that the cloud policy document, along with data protection and cybersecurity guidelines, are currently under review,” Roy noted. “Once finalized, we will make everything publicly accessible. Legal frameworks compel us to enforce these policies.”
The seminar, moderated by Mohammad A. Akhter, Director of Citibank N.A., featured prominent speakers including Ruzan Sarwar, Head of Public Policy for Bangladesh and Nepal at Meta; Yanfan Zhang, Director of International Public Policy at Ant International; Otto Magne Risback, CFO of Grameenphone; and Rohit Jhawar, Head of Public Sector Sales for Citi Asia.
Speaking on the future of Bangladesh’s e-commerce, Yanfan Zhang emphasized the importance of multi-stakeholder partnerships in facilitating cross-border payments. “Bangladesh must tailor its strategy to prioritize SMEs, individual entrepreneurs, and the corporate sector,” she said. “We are currently focusing on two key areas—travel and trade. As the advisor mentioned, 33% of SMEs in Bangladesh account for 80% of employment. However, they lack access to global markets because they don’t know how to engage. To bring SMEs into global trade through e-commerce, we need affordable, fast, efficient, and transparent payment solutions.”
Highlighting Meta’s support for small businesses, Ruzan Sarwar stated, “Many individuals have become entrepreneurs by utilizing Facebook’s digital services. Local small businesses are experiencing strong growth thanks to technology. We are now working to empower developer communities to support cashless payments. If we want a digital transformation of the financial sector, we must first identify and address the obstacles within it.”
Grameenphone CFO Otto Magne Risback stressed the need to simplify licensing procedures to accelerate the digital economy. “In this era of rapid technological change, the licensing model should be reconsidered,” he said.
The seminar underscored the urgent need for regulatory reforms, technological inclusion, and affordable financial solutions to build an inclusive digital ecosystem in Bangladesh.
