In 2022 the State Bank of Pakistan introduced a licensing framework with two kinds of digital bank: the Digital Retail Bank and the Digital Full Bank. In September 2023 it gave in-principle approval to five applicants.
Where each one stands
- easypaisa BankCommercial · Jan 2025
Converted from Telenor Microfinance Bank. The first digital retail bank approved for regular operations, on 28 January 2025. Owned 55% by Telenor Group and 45% by Ant Group.
- Mashreq Bank PakistanPilot · Feb 2025
Received the first restricted licence for pilot operations. A wholly owned subsidiary of UAE-based Mashreq Bank.
- Raqami Islamic Digital BankPilot · May 2025
Received a restricted licence to begin pilot operations as Pakistan's first digital Islamic retail bank.
- HugoBankPilot · Aug 2026
Received approval from the State Bank to start pilot operations.
- KT Bank PakistanIn-principle · Sep 2023
One of the five applicants approved in principle in 2023.
What a pilot is
A pilot lets a digital bank test its products and systems with a limited group of real customers before a full public launch, and refine them based on what it learns.
Why it matters for fintechs
easypaisa's planned services include digital accounts, deposits, lending, international remittances and cards. As more digital banks move from pilot to full operation, fintechs gain more potential partners for accounts, cards and lending, without needing a banking licence of their own.