The State Bank of Pakistan (SBP) is poised to grant preliminary approvalsin the coming weeks to five newly established financial firms, paving theway for the establishment of Digital Banks in Pakistan. These institutions,including Easypaisa DB, Hugo Bank, KT Bank, Mashreq Bank, and Raqami, willreceive their initial licenses from the central bank.
This significant development is expected to occur around September 20, asrevealed by industry insiders who spoke to ProPakistani.
These selected companies were issued No-Objection Certificates back inJanuary 2023, accompanied by instructions to establish their corporatepresence and hire staff within the country.
The selection process for these entities was meticulous and rigorous,evaluating various criteria such as the financial stability of theirsponsors, business plans, implementation strategies, funding and capitalarrangements, IT and cybersecurity measures, and outsourcing arrangements,among others. These companies also presented their business cases to thebanking regulator.
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Moving forward, these entities will embark on a one-year journey tostreamline their operations, preparing for the pilot and commercial launchof a diverse range of financial services in accordance with their grantedlicenses. Among the five entities, three will establish full-fledgedDigital Banks, while the other two will focus on Digital Retail Banking.
Estimates suggest that these digital financial institutions will attractapproximately Rs. 50 billion in investments from both foreign and localsponsors, enabling them to meet the requirements for paid-up capital,operational infrastructure, and human resources. This influx of capital isexpected to drive innovation and competition in Pakistan’s banking sector,fostering greater access to digital financial services for the nation’spopulace
