SBP Issues NOCs to Five Applicants to Set Up Digital Banks –

According to the latest reports, the State Bank of Pakistan (SBP) has recently issued certificates of no objection (NOCs) to five applicants for setting up digital banks in the country. Let’s dive in.

NOCs issued to these 5 applicants for setting up digital banks

The five applicants awarded NOCs for setting up digital banks are listed below:

I) Easy Paisa DB (Telenor Pakistan BV & Ali Pay Holding Ltd.)

II) Hugo Bank (Getz Bros & Co., Atlas Consolidated Pte. Ltd. and M&P Pakistan Pvt. Ltd.)

III) KT Bank (Kuda Technologies Ltd., Fatima Fertilizer Ltd. and City School Pvt. Ltd.)

IV) Mashreq Bank (Mashreq Bank UAE)

Q) Raqami (Kuwait Investment Authority via – PKIC and Enertech Holding Co.)

According to previous reports, SBP also announced a licensing and regulatory framework for digital banks in January 2022. SBP stated:

“The Framework was the first step towards introducing fully-fledged digital banks in the country. Digital banks are required to provide all banking services through digital means without their customers having to physically visit the bank branches.”

As of March 31, 2022, the central bank received twenty (20) applications in response to SBP’s licensing and regulatory framework for digital banks. The response came from a wide range of interested parties, including commercial banks, microfinance banks, electronic money institutions and even fintech companies. In addition, a number of foreign participants, including venture capital firms active in digital banking, also expressed a desire to enter the Pakistani market. They wanted to go to market either directly or through partnerships with local businesses. As a result, five applications have been selected following a rigorous and demanding assessment process in line with the requirements of the framework.

Reports claim that the applicants have been assessed on various parameters including suitability and decency, experience, financial standing, business plan, implementation plan, funding, capital plan, IT and cyber security strategy and outsourcing arrangements. In addition, all applicants were given the opportunity to submit their business cases to SBP.

The SBP even stated that it expects the digital banks to help promote financial inclusion once they start operations by providing affordable/cost-effective digital financial services, including credit access for underserved and underserved segments of society.

Also Read: President Arif Alvi blames social media for issues between Imran Khan and General Qamar Javed Bajwa – PhoneWorld

Amir Hussain

Amir Hussain is the founder of Freemium World, a geek by nature and a professional Blog writer . I love to write about new technology trends, social media, hacking, blogging and much more.

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