SECP okays Rs 1.5bn paid-up capital of Hugo Bank
A significant milestone has been achieved in the establishment of Pakistan’s first digital retail bank, with the Securities and Exchange Commission of Pakistan (SECP) approving a Rs 1.5 billion increase in the paid-up capital of Hugo Bank.
The fresh investment is expected to pave the way for Hugo Bank’s commercial launch. The bank has already received in-principle approval from the State Bank of Pakistan for establishing a digital retail bank.
According to the SECP, a consortium of Pakistani and Singaporean investors is setting up the country’s first digital bank, with Hugo Bank’s sponsors committed to investing $60 million.
The main investors/sponsors behind HugoBank are Muller & Phipps Pakistan (M&P), a major Pakistani logistics and distribution company, Getz Pharma / Getz Group — a Pakistani pharmaceutical group and Hugosave, linked with Singapore-based Atlas Consolidated — a Singaporean fintech/wealth technology company.
The launch of Hugo Bank is expected to enhance competition in Pakistan’s digital financial sector. The bank will provide branchless banking services through mobile and online platforms, offering customers faster, more affordable, and convenient financial solutions.
The growth of digital banking services is expected to improve financial inclusion and expand access to modern banking facilities across the country.
The State Bank of Pakistan granted initial No-Objection Certificates (NOCs) to five digital retail banks including Easypaisa DB, HugoBank, KT Bank Pakistan, Mashreq Bank Pakistan, and Raqami Islamic Digital Bank.
These institutions are rolling out pilot operations and commercial launches after meeting regulatory capital requirements.
SBP had said that the five applicants were selected following a “thorough and rigorous assessment process”. They were assessed on fitness and propriety, experience and financial strength, business plan, implementation plan, funding and capital plan, IT and cybersecurity strategy, and outsourcing arrangements, among other parameters.
The successful applicants will now each incorporate a public limited company with the Securities and Exchange Commission of Pakistan.
The next step will be gaining an in-principle approval from SBP to demonstrate operational readiness and commence the pilot phase.
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