ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved the issuance of shares to the sponsor shareholders of HugoBank Limited, enabling a fresh equity injection of Rs1.5 billion that marks a significant step toward the launch of one of Pakistan’s first digital retail banks.
The capital injection will allow HugoBank to meet the State Bank of Pakistan’s (SBP) Minimum Capital Requirement (MCR), a key regulatory condition for commencing commercial banking operations.
The HugoBank has secured the State Bank of Pakistan’s In-Principle Approval (IPA) to establish a digital retail bank in Pakistan. The bank is being established through Starlight Holdings (Private) Limited, with its sponsors committing approximately USD60 million in capital and technology support to develop a state-of-the-art digital banking platform.
HugoBank is backed by a consortium of Pakistani and Singaporean investors, led by Singapore-based Atlas Consolidated in partnership with The Getz Group and Pakistan’s Muller and Phipps.
Digital retail banks operate without traditional branch networks and rely on technology-driven platforms to offer banking services through mobile applications and online channels. Their business model is expected to lower operating costs, improve customer convenience, and expand access to formal financial services, particularly for underserved and unbanked segments of the population.
The entry of HugoBank is expected to intensify competition in Pakistan’s rapidly evolving digital financial services market. Industry experts believe that digital banks can accelerate financial inclusion by offering faster account opening, low-cost digital payments, instant fund transfers, digital savings products, and technology-enabled lending solutions.
Copyright Business Recorder, 2026
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