MBPL is a subsidiary of Mashreq Bank PSC (UAE)
Karachi ( Web News )
The State Bank has granted a pilot license for a digital retail bank to Mashreq Bank Pakistan Limited. Previously, a microfinance bank was issued the first license for commercial operations as a digital retail bank. MBPL is a subsidiary of Mashreq Bank PSC (UAE), which has a remarkable history of innovation in banking, customer-centric services, and operational excellence.
The State Bank introduced the regulatory framework for full-fledged digital banks in 2022, under which licenses were issued for Digital Retail Banks and Digital Full Banks. After a rigorous evaluation, the State Bank has already issued No Objection Certificates (NOCs) to five institutions.
The Governor of the State Bank expressed optimism that Mashreq Bank would leverage advanced technologies such as artificial intelligence and cloud computing. He emphasized that the licensing framework for digital banks aims to drive digital transformation and enhance financial inclusion.
He further stated that digital banks should cater to the evolving needs of consumers by offering simple and accessible digital services. A robust digital infrastructure is also essential to counter cybersecurity challenges. Ensuring the security of operations and safeguarding consumer data is critical to maintaining trust and integrity in the financial system.
It is expected that digital banks will provide affordable financial services to underserved and unbanked populations. The license was granted in a special meeting with the Board and senior management of Mashreq Bank Pakistan Limited. The Deputy Governor of the State Bank and senior officials were also present on this occasion.
This marks another significant milestone, as earlier this year, a microfinance bank was granted the first Digital Retail Bank (DRB) license for commercial operations.