Raqami Bank aims to onboard one million customers within three years
Raqami
Islamic Digital Bank (RIDB), backed by the Kuwait
Investment Authority, plans to invest $100 million over the next five years
as it prepares to begin commercial operations in February, becoming Pakistan’s
first fully Shariah-compliant digital retail bank, according to a Bloomberg
report.
The Karachi-based lender has successfully
completed its pilot phase and aims to onboard at least one million customers
within three years. Its business model is focused on small and medium-sized
enterprises, freelancers, and other underserved segments of the economy.
Chief Executive Officer Umair Aijaz said
Pakistan offers strong potential for digital banking, particularly in SME
financing, which has seen rapid global adoption. He added that RIDB’s strategy
is built around scaling through technology-driven solutions rather than relying
on physical branch networks.
So far, Raqami has invested approximately Rs8
billion ($28.6 million) to reach the launch stage. Aijaz noted that most of the
remaining capital will be directed toward technology infrastructure, human
resources, and information security, with the bank targeting break-even within
four years.
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As part of its digital expansion, RIDB has
partnered with Euronet Pakistan Pvt Ltd to enhance its payments and transaction
processing capabilities. The collaboration covers payment switching, card
management, credit cards, POS and e-commerce acquiring, ATM control, and fraud
management, supporting a scalable, cloud-ready platform and improving
efficiency and customer experience.
The bank has also established a five-member
Shariah Board, chaired by Dr Mufti Muhammad Imran Ashraf Usmani, to ensure all
products and transactions comply with Islamic principles. Board members said
the initiative would broaden access to Shariah-compliant financial services and
promote inclusive growth.
RIDB’s launch comes amid a wider push to
digitize financial services in Pakistan. The State Bank of Pakistan has issued
No-Objection Certificates to five applicants for digital banking licences—Easy
Paisa, Hugo Bank, KT Bank, Mashreq Bank UAE, and Raqami—under a framework
introduced in January 2022 that allows full-service digital banks without
physical branches.
Chairman Abdullah Al-Mutairi said Pakistan
remains a priority market for Islamic finance, citing a population of around
240 million and an Islamic banking industry valued at over Rs8 trillion as of
June 2023, accounting for nearly 20 percent of the financial sector.
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Raqami
aims to serve a diverse customer base, including SMEs, agriculture, blue-collar
workers, women, youth, and freelancers, positioning itself as a digital-first
Islamic bank focused on advancing financial inclusion and strengthening
Pakistan’s growing digital banking ecosystem.
Source:
Profit Pakistan