According to latest brands updates, State Bank of Pakistan (SBP) is working on introducing a separate category of banking services, The Digital Banks.
“Move will help achieving the maximum target of financial inclusion”, said Syed Irfan Ali, Executive Director, SBP during a conversation with ProPakistani.
Once the process is given a go ahead, banks will be permitted to operate through internet only, i.e. they will be allowed to access customers through internet, without the dire need of physical presence. Whereas on the other hand, customers will be able to operate financial transactions while staying online through websites or mobile apps.
The Regulatory Framework, which is yet to be finalized by SBP, would ideally encompass following broader areas among others:
- Entry criteria for the establishment of Digital Banks
- Minimum Capital Requirement (MCR) for establishment of a Digital Bank
- Customer on boarding criteria as well as digitization support for an Omni Channel Banking Paradigm
“Digital bank incorporates new and developing technologies throughout a financial services entity, in concert with associated changes in internal and external relationships, to provide enhanced customer services and experiences effectively and efficiently”, the SBP director said.
Syed Irfan Ali says that with the changing dynamics in customer demands, with reference to banking services, they simply need more choices with immediate availability and direct access to ready-to-use services. On that note, Pakistan has come a long way from traditional banking services to create modern banks and a digital future.
“SBP is working on development of a concept paper on Digital Banks. This concept paper would include the international experiences of Digital Banks, regulatory framework available, best international practices etc”, told us Syed Irfan Ali.
He added that with the given regard, SBP will develop a Regulatory Framework on Digital Banks after inviting feedback on the concept paper.
It is to be mentioned here that millions of customers are using mobile banking services in Pakistan, especially after the launch of branchless banking. The number of users are increasing with the adoption of new services and availability of 3G and 4G services across Pakistan.