# Digital banks in Pakistan compared: who is licensed and what each offers

URL: https://which.pk/money/guides/digital-banks-pakistan/
Author: Hassam Imtiaz
Updated: 10 Oct 2026

## Summary

Three digital banks hold full State Bank licences in Pakistan as of October 2026: Easypaisa Bank, Mashreq Bank Pakistan and Raqami Islamic Digital Bank. All three are Deposit Protection Corporation members, covering up to Rs 10 lakh per depositor per bank. HugoBank is in a limited pilot and KT Bank had only in-principle approval. Raqami paid 10.50% to 11.50% on savings in September 2026 and Mashreq 10% to 11.50% in August 2026.

## Key facts

- Fully licensed: 3 digital banks
- In pilot: HugoBank
- Deposit protection: Rs 10 lakh per bank
- Savings profit: 10%–11.50% (Aug–Sep 2026)

As of October 2026, **three digital banks** hold a full licence to operate in Pakistan: **Easypaisa Bank**, **Mashreq Bank Pakistan** and **Raqami Islamic Digital Bank**. HugoBank is in a limited pilot, and KT Bank had only reached in-principle approval. There is no single best digital bank in Pakistan. On savings, Raqami paid 10.50% to 11.50% in September 2026 and Mashreq's Islamic account 10% to 11.50% in August 2026.

**Deposit protection at all three licensed digital banks:** Up to Rs 10 lakh per depositor (Easypaisa Bank and Mashreq joined the Deposit Protection Corporation on 1 Oct 2025, Raqami on 30 Mar 2026)

## What is a digital bank in Pakistan?

A digital bank is a bank licensed by the State Bank of Pakistan (SBP) that serves you through an app, the internet, ATMs and call centres instead of branches. SBP set the rules in January 2022 and limited the first round to **five licences**.

There are two kinds. A **Digital Retail Bank** serves individuals. A Digital Full Bank can also serve companies, but only an existing Digital Retail Bank can apply for that licence. All the banks below are Digital Retail Banks.

Digital banks don't need branches. They can still use agents, other banks' branches and up to **25 "smart branches"** with minimal staff for basic cash and non-cash services. These must close within seven years of launch.

## How does a digital bank get a licence?

Each bank goes through the same stages. A bank in the pilot stage is not yet open to the public.

During the pilot, the bank can't widely seek deposits from the public and doesn't have to be a member of the Deposit Protection Corporation (DPC).

## Which digital banks are licensed in Pakistan?

| Bank | Stage (Oct 2026) | Key dates | Islamic or conventional |
|---|---|---|---|
| Easypaisa Bank | Commercial | First Digital Retail Bank licence, 28 Jan 2025; DPC member from 1 Oct 2025 | Not checked |
| Mashreq Bank Pakistan | Commercial | Pilot licence early Jan 2025; commercial launch 16 Sep 2025; DPC member from 1 Oct 2025 | Both |
| Raqami Islamic Digital Bank | Commercial | Pilot licence May 2025; scheduled bank from 6 Feb 2026; DPC member from 30 Mar 2026 | Islamic only |
| HugoBank | Pilot | Pilot approval announced 5 Aug 2026 | Not checked |
| KT Bank Pakistan | In-principle approval (Sep 2023) | No pilot found | Not checked |

The DPC's March 2026 member list names the same three digital banks: Easypaisa Bank, Mashreq Bank Pakistan and Raqami. The News reported on 13 September 2026 that three of the five 2023 applicants had started commercial operations.

## Which is the best digital bank in Pakistan?

It depends on what you want. Here is what the two banks with published rates and fees charged, as of their July to December 2026 schedules:

| | Mashreq NEO (Islamic) | Raqami |
|---|---|---|
| Savings profit | 10.00% up to Rs 15 lakh, 11.50% above (Aug 2026) | 10.50% up to Rs 10 lakh, 11.50% above (Sep 2026) |
| Minimum balance | None | No maintenance charge |
| Debit card | Rs 2,500 issue and Rs 2,500 a year (PayPak or Mastercard) | Rs 2,500 issue and Rs 2,500 a year (PayPak or Visa Classic) |
| ATM withdrawal | Free (charged, then reversed within a week) | Rs 35 through 1Link |
| Transfers to other banks | Free | Free by Raast; by 1Link, first Rs 25,000 a month free, then 0.1% or Rs 200, whichever is lower |
| Card use abroad | 4% (ATM: 4% or Rs 200, whichever is higher) | 4% (ATM: 4% or Rs 300, whichever is higher) |
| Cash deposit | Free at Askari Bank counters | Free at Askari Bank counters |

Mashreq's card fees exclude tax. Islamic profit rates are the actual Mudaraba profit paid for that month, not a fixed promise. Raqami's savings rate was 7.30% in December 2025, so rates can move a lot.

To compare these with ordinary banks, see [savings account profit rates](/money/guides/savings-account-profit-rates/).

## What does each digital bank offer?

### Mashreq Bank Pakistan

Owned by Mashreq of the UAE. Its personal app is called **Mashreq NEO**, and NEOBiz is for small businesses. You need to be 18 or over with a valid CNIC, and you open the account in the Mashreq app.

It offers Islamic accounts and a conventional NEO Savings Account, which paid **10% on all balances** from 1 May 2026. The Islamic Current Profit Account paid 5% in August 2026, though its product page now shows an indicative "up to 2%". Mashreq also says it will let overseas Pakistanis in the UAE open accounts in Pakistan.

### Raqami Islamic Digital Bank

Backed by the Kuwait Investment Authority, and **Islamic only**. Products are a current account, a Mudaraba savings account, savings "pots" and Mudarabah certificates from 7 days to 1 year. In September 2026 the 1-year certificate paid **11.50%** and the 7-day one 10.00%.

You open the account in the Raqami app with your CNIC, a selfie and biometric check. It is for Pakistani residents aged 18 or over. Accounts for companies and minors aren't available yet. The PayPak card allows up to Rs 2 lakh a day in ATM cash.

### Easypaisa Bank

Formerly Telenor Microfinance Bank, with Ant Group as a sponsor. It was the **first** digital bank licensed to start commercial operations, on 28 January 2025. Its website lists the Asaan Digital Account, wallet transfers, Raast, bill payments, microfinance loans and savings accounts. Its Super Saver account opens with as little as **Rs 100** (as of January 2026).

We couldn't open easypaisa.com.pk on 10 October 2026, so the details above come from an Internet Archive copy from January 2026. We couldn't check its current profit rates or fees. For the wallet side, see [Easypaisa vs JazzCash](/money/guides/easypaisa-vs-jazzcash/).

### HugoBank

Sponsored by Getz, Atlas Consolidated and Muller & Phipps Pakistan. HugoBank announced State Bank approval for a pilot on **5 August 2026**. In September 2026 its CEO told The News the pilot had started with employees and would widen to consortium members before it seeks a commercial licence. The public can only join a waitlist on its website.

### KT Bank Pakistan

Sponsored by Kuda Technologies, Fatima Fertilizer and City School. It got in-principle approval in September 2023, and we found no pilot licence. Fatima Group's website now presents an Islamic digital bank called **Buraq Bank**, which it says has in-principle approval. We found no State Bank notice confirming that Buraq Bank is KT Bank renamed.

## Is a digital bank safe?

The three licensed digital banks hold **SBP banking licences** and are regulated by SBP. All three are DPC members. If SBP declares a member bank failed, the DPC repays eligible deposits up to **Rs 10 lakh per depositor per bank**.

**Pilot banks are different:** A bank in its pilot stage doesn't have to be a DPC member, and SBP caps each pilot customer's balance at Rs 5 lakh. Check a bank's stage before you move large amounts.

If you hold more than Rs 10 lakh, splitting it across banks keeps more of it inside the protected limit, because the limit applies per bank.

## Digital bank, bank app or wallet: what's the difference?

- **Digital bank:** a full bank with a banking licence and no need for branches. Savings accounts, debit cards and transfers through an app.
- **Ordinary bank app:** an account at a bank with branches, used through its app. See [the best bank in Pakistan](/money/guides/best-bank-in-pakistan/) for branch banks.
- **Wallet or payment app:** see [NayaPay vs SadaPay](/money/guides/nayapay-vs-sadapay/) for their limits and fees.

If you live abroad, see [investing through a Roshan Digital Account](/money/guides/roshan-digital-account-investment/). Freelancers can compare options in [freelancer payment methods](/business/guides/freelancer-payment-methods-pakistan/).

More guides: [Banking & Payments](/money/banking/), [credit cards compared](/money/guides/credit-cards-pakistan-compared/), [Money](/money/).

## Questions people ask

### Which digital banks are licensed in Pakistan?

Three: Easypaisa Bank (licensed in January 2025), Mashreq Bank Pakistan (commercial launch in September 2025) and Raqami Islamic Digital Bank (a scheduled bank from 6 February 2026). HugoBank is in a pilot.

### Is Raqami bank safe?

Raqami holds a State Bank Digital Retail Bank licence and has been a Deposit Protection Corporation member since 30 March 2026. Eligible deposits are protected up to Rs 10 lakh per depositor if the bank is declared failed.

### When will HugoBank launch?

HugoBank announced State Bank approval for a pilot on 5 August 2026 and started with its own employees. The rules set a pilot stage of at least three months, and we found no launch date announced by HugoBank.

### What happened to KT Bank?

KT Bank Pakistan got in-principle approval in September 2023. Fatima Group, one of its sponsors, now presents an Islamic digital bank called Buraq Bank, which it says has in-principle approval. We found no State Bank notice linking the two names.

### Can I deposit cash in a digital bank?

Mashreq and Raqami both list free cash deposits over the counter at Askari Bank in their July to December 2026 fee schedules. Digital banks may also use agents, ATMs and cash deposit machines.

## Sources

- [BPRD Circular No. 01 of 2022: Licensing and Regulatory Framework for Digital Banks](https://www.sbp.org.pk/bprd/2022/C1.htm), State Bank of Pakistan (accessed 10 Oct 2026)
- [Licensing and Regulatory Framework for Digital Banks](https://www.sbp.org.pk/bprd/2022/C1-Annex.pdf), State Bank of Pakistan (accessed 10 Oct 2026)
- [SBP issues NOCs to five applicants for establishing Digital Banks](https://www.sbp.org.pk/press/2023/Pr1-13-Jan-2023.pdf), State Bank of Pakistan (accessed 10 Oct 2026)
- [SBP Awards First Digital Retail Bank License to Easypaisa Bank Limited](https://www.sbp.org.pk/press/2025/Pr-28-Jan-2025.pdf), State Bank of Pakistan (accessed 10 Oct 2026)
- [Notification No. BPRD (DBD)/5492/2026: Raqami declared a scheduled bank](https://www.sbp.org.pk/notification/no-bprd-dbd-5492-2026), State Bank of Pakistan (accessed 10 Oct 2026)
- [DPC Circular Letter No. 03 of 2025: Member institutions](https://dpc.org.pk/Circulars/2025/CL_3.pdf), Deposit Protection Corporation (accessed 10 Oct 2026)
- [DPC Circular Letter No. 02 of 2026: Member institutions](https://dpc.org.pk/Circulars/2026/CL_02.pdf), Deposit Protection Corporation (accessed 10 Oct 2026)
- [Frequently Asked Questions for Banks](https://dpc.org.pk/FAQ-b.html), Deposit Protection Corporation (accessed 10 Oct 2026)
- [Mashreq NEO Islamic rate sheet](https://www.mashreq.com/-/jssmedia/pdfs/pakistan/neo/pk-neo-islamic-rate-sheet.ashx), Mashreq Pakistan (accessed 10 Oct 2026)
- [Mashreq NEO Savings Account rate sheet](https://www.mashreq.com/-/jssmedia/pdfs/pakistan/neo/accounts/rate-sheet-conventional-en-ur.ashx), Mashreq Pakistan (accessed 10 Oct 2026)
- [Schedule of Charges: Mashreq NEO Islamic, July to December 2026](https://www.mashreq.com/-/jssmedia/pdfs/pakistan/neo/accounts/soc-islamic-en-ur.ashx), Mashreq Pakistan (accessed 10 Oct 2026)
- [Mashreq NEO Islamic Current Profit Account](https://www.mashreq.com/en/pk/neo/accounts/neo-islamic-current-profit/), Mashreq Pakistan (accessed 10 Oct 2026)
- [Mashreq announces commercial launch of full services digital retail bank in Pakistan](https://www.mashreq.com/en/uae/news/2025/september/mashreq-commercial-launch-pakistan/), Mashreq (accessed 10 Oct 2026)
- [Historical Profit Rates 2026](https://raqamidigital.com/wp-content/uploads/2026/10/Historical-Profit-Rates-Y2026.pdf), Raqami Islamic Digital Bank (accessed 10 Oct 2026)
- [Schedule of Charges, July to December 2026](https://raqamidigital.com/schedule-of-charges/), Raqami Islamic Digital Bank (accessed 10 Oct 2026)
- [Products](https://raqamidigital.com/products/), Raqami Islamic Digital Bank (accessed 10 Oct 2026)
- [Super Saver Account](https://easypaisa.com.pk/super-saver-account/), Easypaisa Bank (accessed 10 Oct 2026)
- [HugoBank - Banking for All](https://www.hugobank.com.pk/), HugoBank (accessed 10 Oct 2026)
- [HugoBank achieves pilot approval from SBP](https://www.app.com.pk/?p=1257885), Associated Press of Pakistan (accessed 10 Oct 2026)
- [HugoBank begins pilot ahead of commercial launch, CEO says](https://www.thenews.pk/print/1437073-hugobank-begins-pilot-ahead-of-commercial-launch-ceo-says), The News (accessed 10 Oct 2026)
- [Say hello to Pakistan's first digital bank](https://profit.pakistantoday.com.pk/2025/01/13/say-hello-to-pakistans-first-digital-bank), Profit by Pakistan Today (accessed 10 Oct 2026)
- [Raqami awarded restricted license by SBP to commence pilot operations](https://www.nation.com.pk/17-May-2025/raqami-pakistan-s-first-digital-islamic-retail-bank-awarded-restricted-license-by-sbp-to-commence-pilot-operations), The Nation (accessed 10 Oct 2026)
- [Buraq Bank](https://www.fatima-group.com/buraq-bank/), Fatima Group (accessed 10 Oct 2026)