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Regulated for Growth - Licensing as the Cornerstone of the Digital Banking Revolution

The article from ProPakistani discusses the pivotal role of licensing in fostering the growth of digital banking in Pakistan. It highlights how the State Bank of Pakistan (SBP) has introduced a comprehensive licensing framework to regulate digital banks, aiming to promote financial inclusion, innovation, and competition. The framework includes stringent criteria for applicants, focusing on governance, risk management, and technological capabilities to ensure stability and security in the digital banking sector. The article also touches upon the potential benefits of digital banks, such as lower operational costs, enhanced customer experience through technology, and the ability to reach underserved populations. However, it notes the challenges like cybersecurity risks, regulatory compliance, and the need for public trust in digital platforms. The licensing regime is seen as a cornerstone for the digital banking revolution, providing a structured path for new entrants while safeguarding the financial ecosystem.

Read the Full ProPakistani Article at:
[ https://propakistani.pk/2025/03/01/regulated-for-growth-licensing-as-the-cornerstone-of-the-digital-banking-revolution/ ]