The Securities and Exchange Commission of Pakistan (SECP) has allowed HugoBank Limited to commence pilot operations and approved a fresh equity injection of Rs. 1.5 billion through the issuance of shares to its sponsor shareholders.
The additional capital will help HugoBank meet the State Bank of Pakistan’s (SBP) minimum capital requirement, a key regulatory condition for progressing toward commercial banking operations. HugoBank has already secured the SBP’s in-principle approval to establish a digital retail bank in Pakistan.
The venture is being developed through Starlight Holdings (Private) Limited, with its sponsors committing around $60 million in capital and technology investments to build its digital banking infrastructure.
The bank is backed by a consortium of Pakistani and Singaporean investors led by Atlas Consolidated, in partnership with The Getz Group and Muller & Phipps Pakistan.
Unlike conventional banks, digital retail banks operate primarily through mobile apps and online platforms instead of physical branches. The model is designed to reduce operating costs, improve customer convenience, and expand access to banking services.
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