Islamabad, Feb 21: The State Bank of Pakistan (SBP) has taken a significant step in the country’s digital banking transformation by awarding the first restricted license for pilot operations to Mashreq Bank Pakistan Limited (MBPL). In a special meeting attended by the SBP Governor, Deputy Governor, and senior executives, the announcement marked another milestone in the evolution of Pakistan’s financial sector.
This development follows SBP’s earlier decision to license the first Digital Retail Bank (DRB) for commercial operations. MBPL, a wholly owned subsidiary of Mashreq Bank PSC (UAE), brings a rich legacy of innovation and agility in the banking sector, leveraging its global presence across Europe, Asia, Africa, and the US. With its technological expertise and customer-centric approach, the bank aims to play a key role in the country’s digital banking landscape.
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SBP introduced its digital banking regulatory framework in 2022, allowing both fintech startups and traditional banks to establish fully digital banking operations. Under this framework, two types of digital bank licenses were introduced: Digital Retail Bank (DRB) and Digital Full Bank (DFB), with all services offered exclusively through digital platforms. To ensure healthy competition and financial inclusion,
SBP decided to initially grant five licenses and received 20 applications from major financial institutions. After a thorough evaluation, SBP issued No-Objection Certificates (NOCs) to five institutions, including Easypaisa Bank Limited, Mashreq Bank Pakistan Limited (MBPL), Raqami Islamic Digital Bank Limited (RIDBL), HugoBank Limited, and KT Bank Limited.
The SBP Governor urged MBPL to maintain high standards, utilizing advanced technologies such as artificial intelligence (AI) and cloud computing to provide seamless, secure, and personalized banking experiences. He stressed the importance of compliance with strict regulatory standards to foster trust, security, and innovation in the sector.
With Pakistan’s large unbanked population, digital banking is expected to drive financial inclusion by offering affordable and accessible financial services. SBP remains committed to ensuring that digital banks prioritize innovation, cybersecurity resilience, and regulatory compliance to create a modern and future-ready financial ecosystem.
