The State Bank of Pakistan (SBP) on Tuesday awarded its first digital retail banking (DRB) license to easypaisa digital bank, marking a significant milestone in the country’s efforts to expand financial services to unbanked and underserved populations.
The license authorizes easypaisa, formerly known as Telenor Microfinance Bank Limited, to launch banking operations aimed at promoting financial inclusion while prioritising cybersecurity.
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SBP Governor Jameel Ahmad presented the license during a ceremony, emphasising the need to address challenges posed by rapid technological advancements.
He highlighted two key areas; enhancing digital literacy among customers and implementing robust cybersecurity measures to safeguard customer trust and maintain the financial system’s integrity, according to an official statement.
The SBP governor urged easypaisa to draw inspiration from its sponsor, Ant Group, and focus on driving the digital transformation of small and medium enterprises (SMEs) in Pakistan.
He also encouraged easypaisa and four other digital banks currently in pilot phases to innovate and develop customer-centric solutions tailored to individuals, micro, small, and medium enterprises (MSMEs), and other underserved groups.
“This focus would be instrumental in fostering financial inclusion and driving economic growth,” he added.
Pakistan has developed a robust infrastructure for online banking, which has been tested during Covid-19 and onwards. Many commercial banks are offering limited digital banking services at present as well.
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While many commercial banks currently offer limited digital services, the DRB license represents a leap forward in expanding access to financial tools.
Speaking at a press conference later in the day, Irfan Wahab Khan, Chairman of easypaisa digital bank’s board, outlined the bank’s plans to facilitate remittances from overseas Pakistanis and provide housing loans and car financing.
Jahanzeb Khan, President & CEO of the bank, said that easypaisa already serves 50 million customers, manages Rs80 billion in deposits, and disburses 65,000 microloans daily through its mobile banking platform.
Douglas Feagin, a board member and President of Ant International & Senior Vice President of Ant Group, expressed optimism about the digital bank’s future.
He stated that Ant Group is committed to supporting easypaisa’s transformative journey, empowering millions of Pakistanis and driving greater financial inclusion and economic progress across the country.
Telenor Group, a leading telecom operator in Asia and the Nordics, jointly owns easypaisa digital bank. The group holds a 55% stake, and Ant Group, a global leader in open internet platforms, which owns the remaining 45%.
The SBP’s move to award the DRB license follows its earlier issuance of No Objection Certificates (NoCs) in January 2023 to five applicants, including easypaisa, HugoBank Limited, KT Bank Pakistan Limited, Mashreq Bank Pakistan Limited, and Raqami Islamic Digital Bank Limited.
These entities received In-Principle Approval (IPA) in September 2023 to prepare for operational readiness, signaling a new era of digital banking in Pakistan.
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