It has taken a while, but Pakistan finally has its first digital bank. After nearly three years, the State Bank of Pakistan has given a digital banking licence to Easypaisa, which was one of many contenders that had first made a bid for this pioneering opportunity.
This marks a watershed moment in Pakistan’s digital economy. In less than a decade, Easypaisa has been one of the leaders, along with JazzCash, in making digital transactions and digital money common in Pakistan. These institutions have also played a big role in pushing conventional banks into improving their digital products and services.
But what does it mean now that Easypaisa has a digital banking licence? They have already made their place in Pakistan’s financial history, redefining how the transfer of money works. But this position came at a cost. Telenor Microfinance Bank, the entity behind Easypaisa, has often run into its fair share of complications. Most of these complications are a result of expanding their operations. As a result, the bank frequently found itself in dire straits, requiring multiple bailouts from its sponsors in the form of equity injections. The most recent occurrence was in November 2024, when Telenor Group and Ant Group collectively invested $10 million into the institution for its smooth transition to digital retail banking, taking the total of equity injections in the bank to $319 million since 2018.
Although the bank has displayed a mixed performance over the past two decades of its existence, it is one of the few pioneers in microfinance, which has achieved a turnaround and is on a growth trajectory over the past few years. But, the question arises why has Telenor Microfinance Bank rebranded itself as Easypaisa Digital Retail Bank? Does the bank have a plan for digital retail banking or has it just jumped onto the bandwagon?
A brief history
Easypaisa Digital Retail Bank traces its history back to September 2005, when it was founded as Tameer Bank, by Nadeem Hussian, a former Citibanker. He envisioned taking the microfinance industry to new heights, where microfinance institutions operated on a massive scale, generated healthy profits, and created an impact on the low income strata of society, instead of merely functioning as a charitable institution. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
