Mashreq Bank is on the verge of disrupting Pakistan’s digital banking landscape. The Dubai-based financial giant awaits final approval from the State Bank of Pakistan (SBP) to launch its digital retail banking operations.
In a recent interview, Mashreq Pakistan CEO Muhammad Hamayun Sajjad expressed his optimism, stating they’ve made significant progress towards securing their license. Having received in-principle approval and registered as an entity, they anticipate a swift final go-ahead from the SBP.
“We are working closely with regulators to ensure full compliance,” said Sajjad. “Our aim is to begin operations as soon as we receive final approval.”
This move comes after the SBP granted in-principle approvals to five banks, including Mashreq, in September 2023. This paves the way for a new wave of digital financial services in Pakistan. Other contenders include HugoBank, KT Bank Pakistan, Telenor Microfinance Bank, and Raqami Islamic Digital Bank.
Sajjad, emphasizing Mashreq’s position as a MENA region digital leader, highlighted their excitement about entering Pakistan’s market. He stressed the importance of “Digital Darwinism,” the need for financial institutions to adapt to the ever-evolving technological landscape. Citing SBP data, he pointed to the surge in digital transactions, reflecting Pakistan’s growing tech-savvy population.
“Digital banking licenses represent a major shift,” said Sajjad. “Pakistan’s digital growth, particularly in mobile and internet banking, has surpassed traditional ATM usage.” He underscored Mashreq’s commitment to building user-friendly digital platforms for Pakistan’s dynamic digital ecosystem.
While acknowledging the success of branchless banking initiatives launched in 2008, Sajjad recognized the complexities of today’s digital banking environment. Challenges like customer trust, technology integration issues, and the gap between innovation potential and practical implementation were all mentioned.
Mashreq’s strategy focuses on setting new digital banking benchmarks. They plan to offer a comprehensive suite of financial products and services, including advanced payment options, digital accounts, credit facilities, and investment tools, all accessible through mobile and web platforms.
Financial inclusion is another key focus for Mashreq. They aim to empower underserved segments like women, youth, SMEs, and freelancers. By leveraging technologies like AI and blockchain, Mashreq plans to enhance security, transparency, and efficiency in digital transactions, ultimately redefining the way banking is done in Pakistan.