The state bank of Pakistan is taking a new initiative to take the economy of Pakistan to the next level. The idea is to revolutionize the banking services in Pakistan for everyone – those who live in the country and oversee Pakistani’s as well. The step is said to be the digital transformation in Pakistan for the banking industry.
The State Bank of Pakistan issued the “Licensing and Regulatory Framework for Digital Banks” on Jan 3rd. Furthermore, it was said that SBP will grant a license to 5 digital banks. The central bank said ‘’We intend to bring digital banks with a strong value proposition, robust technological infrastructure, sufficient financial strength, technical expertise, and effective risk management culture’’.
What is a digital bank?
A digital bank is the online means of providing people and connecting them with the relevant branches of people in finance to help them with their start-ups, and established businesses.
The bank has said that they will also set up a team of experts to assist those concerned with the effective implementation of this plan. To create awareness of this important development in regulatory ambit, the SBP organized a webinar titled ‘Digital Banks — A New Era in Banking’. The objective of the webinar was primarily to create awareness about the next generation of banks, i.e. digital banks, and the potential they offer for financial inclusion in the country. It was also aimed at sharing the details of the digital banking framework amongst the market participants and prospective investors and addressing their queries.
This will not only help the GDP of Pakistan but also provide people with the opportunities to be more financially inclusive. We think that this initiative by the State Bank of Pakistan is something that needs to be appreciated. It might not only change the way people look at Pakistan in the coming years, but also it will inspire, and motivate the people of this country. They will have the means to turn their dreams into reality.