Raqami Islamic Digital Bank has announced its plans to invest USD 100 million over the next five years as it prepares to start commercial operations in February.
Following this announcement, Karachi-based lender, which was backed by the Kuwait Investment Authority, has completed its pilot phase and aims to attract several customers and users within three years, with a focus on small- and medium-sized enterprises (SMEs), freelancers, and underserved segments.
Exploring the digital banking opportunity in the region of Pakistan
According to Bloomberg, Raqami has already invested around USD 28.6 million in order to reach the launch phase, with plans to channel most of the remaining USD 100 million into technology, human resources, and information security. At the same time, the bank is targeting break-even within four years. RIDB is also expected to focus on serving diverse segments, including SMEs, the agriculture sector, blue-collar workers, and freelancers, with the overall aim to combine digital development with Shariah-compliant financial solutions.
RIDB has also entered into various partnerships, including one with Euronet Pakistan, in order to strengthen its digital payment infrastructure and services such as payment switch, card management, credit cards, POS/e-commerce acquiring, ATM controller, and fraud management solutions. Moreover, officials of the institution also mentioned that these initiatives aim to create an integrated, scalable, and cloud-ready digital banking platform, improving operational efficiency and the overall customer experience as well.
The bank’s operations are expected to complement ongoing reforms and support financial inclusion, as well as offering tailored Islamic banking solutions to a broad customer base and strengthening Pakistan’s overall digital financial ecosystem. The financial institution will also continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
