Karachi:The State Bank of Pakistan, Tuesday, granted the first digital retail banking license in the country to Easypaisa Digital Bank Limited in a bid to promote innovation, enhance financial inclusion, and ensure the availability of accessible and affordable digital financial services.
The Governor SBP, Jameel Ahmad, awarded the first Digital Retail Bank (DRB) license to Easypaisa Bank Limited (formerly Telenor Microfinance Bank Limited), authorizing it to commence commercial operations.
The ceremony was attended by CEOs of digital banks, members of the Executive Committee of the Pakistan Banks’ Association, the Board of Directors and the senior management of Easypaisa Bank and senior executives of SBP.
Governor SBP, speaking at the ceremony, termed the issuance of first digital retail banking license as a milestone in financial history of the country that will expand the access of the citizens to financial services and promote the digital financing system and financial inclusion in Pakistan.
He underscored SBP’s strategic role in establishing the framework for digital banking in Pakistan and facilitating the development of digital banks through a structured licensing process. He urged Easypaisa Bank Limited to draw inspiration from its sponsor, Ant Group, by prioritizing the digital transformation of small and medium enterprises (SMEs) in Pakistan.
The Governor also highlighted the critical importance of achieving licensing milestones and encouraged digital banks to innovate and design customer-centric solutions tailored to the needs of individuals, micro, small, and medium enterprises (MSMEs), and other underserved segments. He emphasized that this focus would be instrumental in fostering financial inclusion and driving economic growth.
The half of the adult population in the fifth most populated nation of world is unbanked and provision of digital services and products will help expanding the public access to finance, he noted and underscored that digital banks will not only help provision of banking services to residents of far flung and remote areas but they will also play a significant role in provision of financial assistance to Micro, Small and Medium enterprises to enable them to grow and thrive.
The Governor stressed upon the importance of addressing challenges associated with rapid technological advancements.
He highlighted two critical areas of digital literacy of customers and cyber security measures to protect customer trust and ensure the integrity of the financial system.
He also expressed his confidence that, with the issuance of this license, Easypaisa Bank Limited will prioritize the development of innovative, customer-focused, and affordable digital financial solutions, particularly for underserved and unserved segments of society. He emphasized that such efforts will play a pivotal role in advancing the financial inclusion and digitalization objectives.
In January 2023, SBP issued No Objection Certificates (NoCs) to five successful applicants: HugoBank Limited, KT Bank Pakistan Limited, Mashreq Bank Pakistan Limited, Raqami Islamic Digital Bank Limited, and Easypaisa Bank Limited.
These entities were selected following a rigorous evaluation process that assessed key criteria, including governance and fitness, industry expertise, financial capacity, business strategies, implementation frameworks, funding plans, and IT and cyber security infrastructure.
In September 2023, these banks received In-Principle Approval (IPA) to prepare for operational readiness. Subsequently, after fulfilling the required conditions, Easypaisa Bank Limited has now been authorized to commence commercial DRB operations.
The ceremony also featured remarks from the member of the Board of Directors of Easypaisa bank who shared their vision and commitment to driving innovation in digital financial services.
They expressed their gratitude to the State Bank of Pakistan for its support and reaffirmed their dedication to setting new benchmarks in customer-centricity and technological advancement in the financial sector.