Mashreq Pakistan, a subsidiary of UAE-based Mashreq Bank, has obtained a restricted license from the State Bank of Pakistan (SBP) to initiate pilot operations as a digital retail bank.
This development underscores Mashreq’s commitment to delivering innovative financial services tailored to Pakistan’s expanding digital market. The license builds on the SBP’s issuance of five no objection certificates (NOCs) in January 2023, which permitted Mashreq and four other entities to establish digital banking platforms in the country.
Digital banking expansion in Pakistan
Mashreq is the first among these applicants to enter the pilot stage, showcasing its readiness to align with the SBP’s vision of enhancing financial inclusion. The bank plans to offer a digital model that includes Islamic banking solutions, aiming to onboard millions of retail customers within five years. Its target demographic includes underserved and unbanked communities, alongside personal and business clients.
Since beginning operations in 2023, Mashreq Pakistan has made significant progress, such as obtaining in-principal approval for its digital banking framework and completing an operational readiness report for the SBP. Investments in advanced technology, a comprehensive operational framework, and recruitment of top talent have positioned the bank for its launch.
In March 2022, the SBP unveiled its digital banking framework, marking the beginning of a significant shift in the country’s banking sector. After nine months of evaluation, in January 2023, the SBP narrowed down the field to five candidates: Easypaisa, Hugo Bank, KT Bank, Mashreq Bank, and Raqami Bank. These institutions were granted No Objection Certificates (NOCs) to establish digital banks in Pakistan.
Up until this point, the competition among the chosen candidates was intense, with Mashreq Bank emerging as a strong contender. While Easypaisa is arguably the most recognizable name in this group, Mashreq Bank, though not as well-known in Pakistan, has solid backing and an established presence in the country.
As one of the largest conventional banks in the Middle East, Mashreq Bank brings considerable experience to the table. Its digital banking solutions in the Middle East include specialized offerings for startups and SMEs, and it proudly claims the title of the “Best Digital Bank” in the region.
Mashreq’s commitment to digital innovation
Mashreq’s expansion into Pakistan reflects its strategy to lead digital transformation in financial services. With operations in 14 countries, the bank has earned a reputation as a pioneer in digital banking innovation.
Fernando Morillo, Chairman of the Board of Directors of Mashreq Pakistan and Group Head of Retail Banking at Mashreq, said, “We are thrilled to bring Mashreq’s cutting-edge solutions to Pakistan and work alongside SBP to further its financial inclusion goals. he speedy approval from SBP to commence pilot operations has reinforced our commitment to enable greater financial accessibility for all, particularly the underserved and unbanked communities.”
Morillo added that “With Pakistan’s growing digital ecosystem and its youthful, tech-savvy population, the opportunity to drive transformation is incredibly exciting. We are confident that Mashreq’s entry into Pakistan will provide customers with secure, personalized banking solutions that meet their evolving needs.”
CEO Muhammad Hamayun Sajjad emphasized, “We are fully ready and excited to begin this journey in Pakistan. Our focus on innovation and agility enables us to adapt quickly to market needs and provide tailored solutions that empower women, youth, and small businesses.”
The initiative aligns with Mashreq’s “Rise Every Day” philosophy, emphasizing growth, innovation, and financial inclusion. Its entry into Pakistan is expected to significantly enhance the financial ecosystem by introducing secure, efficient, and customer-centric banking solutions.