The State Bank of Pakistan (SBP), in a bid to foster innovation, financial inclusion and availability of affordable digital financial services, granted in-principle approval (IPA) for establishing five digital retail banks on Wednesday.
Governor SBP, Jameel Ahmad awarded IPAs to the five proposed digital banks- HugoBank Limited, KT Bank Pakistan Limited, Mashreq Bank Pakistan Limited, Raqami Islamic Digital Bank Limited and Telenor Microfinance Bank Limited- in a ceremony at SBP Museum Building, said a statement issued here.
The event was attended by sponsors of proposed DRBs, CEOs of incumbent banks, Payment System Operators (PSOs), Payment System Providers (PSPs), Electronic Money Institutions (EMIs), Fintechs and SBP’s top management. It is pertinent to mention that the central bank had issued NoCs to five successful applicants for establishing digital banks in Pakistan in January 2023 and after fulfilment of the necessary requirements, these entities have now been granted in-principle approval to prepare themselves operationally to launch the digital financial services.
Upon attaining operational readiness, these institutions will be required to seek approval of SBP for the commencement of their operations.
Governor SBP while addressing the ceremony highlighted the significance of the initiative of introducing DRBs in the country, its profound benefits to the financial system and some of the key challenges faced by such genre of financial players. Jameel Ahmed also mentioned a few other important regulatory initiatives in support of building a digital financial ecosystem and assured that SBP was fully committed to support various stakeholders for a bright, innovative, and digitally empowered future of banking in Pakistan.
He assured the financial fraternity of SBPs commitment to make the financial system more inclusive, more innovative, and more responsive to the needs of the citizens of Pakistan and shared his expectations that post operational commencement, digital banks will help to develop a digital eco-system, foster a new set of customer experience, provide affordable digital financial services including credit access to unserved and underserved segments of the society.
Deputy Governor SBP, Dr. Inayat Hussain, stated that these IPAs shall enable the proposed DRBs to proceed further with respect to achieving operational readiness in all their functions, including governance, risk management, capital requirements, compliance and audit, consumer protection, business continuity, cyber security, product development, deployment of technological infrastructure, formulation of relevant policies, processes and procedures.—APP
