Mashreq Bank Pakistan (Private) Limited has been granted the nation’s first restricted license by the State Bank of Pakistan (SBP) to function as a digital retail bank. As Pakistan’s financial industry advances toward greater digitalization and financial inclusion, this is a critical turning point.
Leading financial institution Mashreq Bank, headquartered in the United Arab Emirates, has a strong regional presence and a reputation for innovation in digital banking. The limited license lets Mashreq Bank Pakistan start operations on a limited scale before getting complete regulatory approval for a national digital retail banking presence.
Digital banks eliminate the need for physical branches, reducing operational costs and making banking services more affordable. This development is in accordance with the SBP’s aim of fostering financial inclusion and digital transformation, stimulating competition, and improving customer experience in the banking sector.
Overall, the granting of the first restricted license to Mashreq Bank Pakistan is a milestone for the country’s financial sector. It paves the way for further advancements in digital banking, fostering a more inclusive and technologically advanced banking environment.
