Digital Banks in Pakistan 2026: Who Is Licensed and Who Is Next
Digital banks in Pakistan: Easypaisa, Mashreq and Raqami are licensed, HugoBank is in pilot. SBP framework and each bank’s status as of October 2026.
Digital banks in Pakistan now include three lenders licensed for full commercial operations: Easypaisa Bank, Mashreq Bank Pakistan and Raqami Islamic Digital Bank. A fourth, HugoBank, started a limited pilot in August 2026. All five of the State Bank of Pakistan’s (SBP) original digital bank applicants were selected in 2023; here is where each one stands as of October 2026.
Digital banks in Pakistan: status in 2026
| Bank | Stage | Key date |
|---|---|---|
| Easypaisa Bank (formerly Telenor Microfinance Bank) | Commercial licence | First digital retail bank licence, January 2025 |
| Mashreq Bank Pakistan | Licensed digital retail bank | Pilot licence on 21 February 2025 |
| Raqami Islamic Digital Bank | Commercial licence (Shariah-compliant) | Licence awarded in February 2026 |
| HugoBank | Pilot operations | SBP pilot approval, August 2026 |
| KT Bank Pakistan | No commercial licence reported | In-principle approval, 2023 |
How SBP licenses digital banks
The SBP introduced its digital bank licensing framework in 2022, offering two licence types: Digital Retail Bank (DRB) and Digital Full Bank (DFB). These banks work only through apps and online channels, without traditional branches. Of about 20 applications, the SBP issued no-objection certificates to five applicants in January 2023 and in-principle approval in September 2023 (Dawn).
After that, each bank must run a restricted pilot with a small group of customers, pass SBP inspection, and then receive a licence for commercial operations.
What each bank has done so far
Easypaisa Bank
The SBP awarded its first digital retail bank licence to Easypaisa Bank, formerly Telenor Microfinance Bank, in January 2025, authorising it to start commercial operations (Dawn).
Mashreq Bank Pakistan
A subsidiary of the UAE’s Mashreq Bank, it received the first restricted licence for pilot operations as a digital retail bank on 21 February 2025 (APP). Its app is branded Mashreq NEO.
Raqami Islamic Digital Bank
Backed by the Kuwait Investment Authority, Raqami received its commercial licence at a ceremony with Prime Minister Shehbaz Sharif in February 2026, becoming the third licensed digital retail bank and the first fully Shariah-compliant one (Business Recorder, Arab News).
HugoBank
HugoBank received SBP approval for pilot operations in August 2026, and the SECP approved a Rs. 1.5 billion equity injection to help it meet the minimum capital requirement (Business Recorder). In September, its CEO said the bank would submit pilot results to the SBP before seeking approval for a commercial launch (The News).
KT Bank Pakistan
KT Bank was one of the five applicants given in-principle approval in 2023. We could not find any report of a pilot or commercial licence for it as of October 2026.
What digital banks in Pakistan mean for customers
Digital banks let you open an account, save, send money and, in some cases, borrow through a phone app. They are aimed especially at people and small businesses that traditional banks underserve. Digital channels already account for most retail payments in Pakistan: the SBP reported that 92% of retail payment volumes were digital in January to March of FY26, according to The News.
Before you open an account, check that the bank is licensed by the SBP, download its app only from the official app store listing, and compare savings rates and fees with your current bank. For related news, see business news or our report on the income tax return deadline 2026.
Frequently asked questions
How many digital banks are there in Pakistan?
Three are licensed for commercial operations (Easypaisa Bank, Mashreq Bank Pakistan and Raqami), and HugoBank is in its pilot phase as of October 2026.
Which is the first Islamic digital bank in Pakistan?
Raqami Islamic Digital Bank, which received its commercial licence in February 2026.
Are digital banks regulated?
Yes. They are licensed and supervised by the State Bank of Pakistan under its 2022 digital bank framework.
