HugoBank has received approval from the State Bank of Pakistan to begin pilot operations, moving the upcoming digital retail bank closer to a full public launch.
The approval allows the Karachi-based bank to test its products, systems and operational readiness with a limited group of customers. HugoBank said the controlled phase would help assess security, regulatory compliance and customer experience before services reach the wider market.
Business Recorder confirmed the approval on Wednesday, August 5, citing a statement from the bank. The development follows HugoBank’s in-principle approval in September 2023, when SBP selected it among five proposed digital retail banks.
Limited Customer Testing Before Public Launch
During the pilot, HugoBank will monitor how its technology and banking processes perform in daily use. It will also use customer feedback and operational findings to improve products before commercial operations begin.
The bank said it wants to remove traditional banking complexities through a simple, customer-first digital platform. Its stated focus includes financial accessibility, convenience and long-term financial wellness for customers across Pakistan.
“At HugoBank, we believe that true financial freedom begins with ease and convenience. Our goal is to be a trusted financial freedom and wellness partner for our customers, that combines the discipline of a world-class financial institution with the agility of modern technology. We are excited to demonstrate our commitment to expanding customers’ access to secure digital financial services any time and anywhere in the country,” said Asim Hasan, Chief Executive Officer of HugoBank.
HugoBank said the pilot reflects a cautious market-entry strategy built around risk management and secure technological infrastructure. The bank plans to refine its services as it receives feedback from pilot users.
Digital Bank Moves Closer to Commercial Operations
SBP introduced its digital bank licensing framework in 2022 to promote financial inclusion, affordable financial services and technology-led competition. The regulator initially limited the programme to five digital bank licences.
Under the framework, a bank must demonstrate operational readiness before receiving a restricted licence for pilot operations. The pilot must run for at least three months, while the restricted licence can remain valid for up to nine months. Commercial operations require separate SBP approval after the bank completes the pilot and meets regulatory conditions.
Digital retail banks mainly serve individuals through electronic channels instead of traditional branch networks. SBP requires them to maintain minimum capital of Rs1.5 billion during the pilot stage.
In a related development, the Securities and Exchange Commission of Pakistan approved a Rs1.5 billion equity injection for HugoBank. The funding will help it meet SBP’s minimum capital requirement.
HugoBank’s sponsors include Singapore-based Atlas Consolidated, The Getz Group and Pakistan’s Muller & Phipps. The sponsors have committed around $60 million in capital and technology support.
The bank said it aims to build a modern platform suited to Pakistan’s expanding digital economy. However, pilot approval does not yet amount to permission for unrestricted commercial operations.
