SBP to grant preliminary approvals to 5 digital banks in
September
The State Bank of Pakistan (SBP) is poised to grant preliminary
approvals in the coming weeks to five newly established financial companies
intending to establish Digital Banks in Pakistan.
These five entities, namely Easypaisa DB, Hugo Bank, KT Bank,
Mashreq Bank, and Raqami, will receive initial licenses from the central bank,
with the expected announcement date around September 20, according to industry
sources.
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In January 2023, these banks were issued No-Objection
Certificates and directed to establish their presence in the country, including
the recruitment of staff.
The selection process for these companies involved a
comprehensive assessment on various criteria, including the financial strength
and fitness of their sponsors, experience, business plans, implementation
strategies, funding, capital, IT, cybersecurity, and outsourcing arrangements.
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These entities have also presented their business cases to the
banking regulator. Following this preliminary approval, they will have one year
to streamline their operations before receiving permission for the pilot and
commercial launch of a range of financial services as per their licenses. Three
of these entities will establish full-fledged Digital Banks, while two will
operate as Digital Retail Banks.
It is estimated that these digital financial institutions will
attract an investment of Rs. 50 billion from both foreign and local sponsors to
meet the requirements of paid-up capital, operational infrastructure, and human
resources.
Source: Pro Pakistani