Latest news with #MuhammadHamayunSajjad
Business Recorder
6 days ago
- Business
- Business Recorder
From Dubai to Pakistan: Mashreq well on its way to $100mn expansion in digital banking sector
KARACHI: Mashreq, a global digital bank headquartered in Dubai, is looking to transform the banking landscape in Pakistan by transitioning from physical branches to digital transactions. At the core of its extended operations to the South Asian country is a key project to digitalize inflows of workers' remittances from UAE and other parts of the world, as it aims to connect overseas Pakistanis with their families and friends in the homeland. 'Mashreq has a big focus on bringing workers' remittances into Pakistan,' Mashreq Pakistan CEO Muhammad Hamayun Sajjad said in an exclusive interview with Business Recorder. Pakistanis living in Dubai and other parts of the UAE send around $6.25 billion to $6.50 billion a year to their relatives back home. Mashreq already facilitates a significant volume of these remittances in collaboration with other financial entities. 'We are building a fast, convenient, and transparent financial link between Mashreq Dubai and Mashreq Pakistan to ensure that remittances are received instantly. Currently, remittances are being processed by Mashreq Dubai, and our first goal is to shift this flow onto our Pakistan-based platform,' Sajjad said. 'Our second objective is to identify and address the pain points in the remittance process within Pakistan. By learning from these challenges, we aim to enhance the overall user experience. We see a significant opportunity in streamlining remittances—one of the most vital financial lifelines for the country.' Mashreq has six decades of experience serving people and businesses in major markets around the globe, including the Middle East, US,UK and Europe. It is currently running a pilot project in Pakistan aimed at launching a full-fledged retail digital bank in the country by end of December 2025. Mashreq Dubai operates three entities in Pakistan: Mashreq Bank (in its pilot phase), Mashreq Global Network (hiring and managing employees) and a branch office of Mashreq Financial Institutions Group (providing banking solutions to other financial institutions). It has made a combined investment of over $70 million in Pakistan in the past four years. This is expected to reach $100 million by the end of this year. Trade finance In addition to remittances, the bank is engaged in trade finance, Sajjad said. 'While our Pakistan license does not yet permit trade transactions, Mashreq Dubai continues to handle trade flows with Pakistani banks. The bank is among the top six financial institutions globally for US dollar clearing and operates as a trade hub across 14 countries.' Once licensed fully in Pakistan, Mashreq plans to extend its trade services locally within three to five years. In the meantime, it is focused on establishing fast, reliable financial corridors between the UAE and Pakistan, he added. Separate portals for SME and youth Most banks currently serve SME clients through individual or corporate platforms, which often overlook the specific needs of small businesses. To address this gap, Sajjad said, Mashreq is launching Mashreq Neo Business — a dedicated app and portal designed exclusively for SMEs. For individuals, Mashreq will also offer digital joint accounts, eliminating the need to visit branches. Additionally, the bank is introducing Mashreq Neo NXT, a separate digital platform for youth under 18. While minors cannot open full bank accounts, Neo NXT will enable supervised banking for savings and spending, managed by parents—promoting financial literacy from an early age, the CEO said. Cybersecurity, AI keys to success Mashreq emphasizes a robust cybersecurity framework supported by advanced AI-driven monitoring and fraud detection. The bank aligns its systems with State Bank of Pakistan (SBP) regulations for digital banking, including controls for unusual transactions: automated alerts — such as calls on transfers exceeding Rs2 million — enhance customer safety. Leveraging its digital infrastructure from the UAE, Mashreq plans to replicate this model in Pakistan to build trust and institutional credibility in the evolving digital banking sector. Sajjad said that Mashreq sees a massive opportunity in Pakistan's digital banking gap. According to SBP data there are 90–100 million account holders in Pakistan, out of which only 20 million use online banking. That leaves 70 million largely untapped. Existing banks face high costs and limited digital efficiency, while users still struggle with fraud, access, and reliability. A modern, digital-only bank like Mashreq can fill this gap efficiently and cost-effectively. Nearly 500 Pakistan-based professionals — including 43% senior staff — work remotely for Mashreq Dubai across 18 cities without a local office. Mashreq Pakistan operates with 250-300 staff compared to thousands at conventional banks. Operating remotely — without physical branches — and with a lower number of employees cut banking costs significantly. Mashreq also acknowledges rapid growth in Pakistan's e-commerce landscape over the past 12 to 15 years. Consumer behavior shows a strong shift toward digital purchases over physical retail. The bank sees opportunity in this trend, expecting that increased digitization of payments will eventually help grow e-commerce. Mashreq's infrastructure and partnerships can support the evolving ecosystem of e-commerce payments, logistics, banks, and platforms to ensure smooth consumer adoption, Sajjad added. Copyright Business Recorder, 2025
Business Recorder
6 days ago
- Business
- Business Recorder
From Dubai to Pakistan: Mashreq well on its way to $100m expansion in digital banking sector
KARACHI: Mashreq, a global digital bank headquartered in Dubai, is looking to transform the banking landscape in Pakistan by transitioning from physical branches to digital transactions. At the core of its extended operations to the South Asian country is a key project to digitalize inflows of workers' remittances from UAE and other parts of the world, as it aims to connect overseas Pakistanis with their families and friends in the homeland. 'Mashreq has a big focus on bringing workers' remittances into Pakistan,' Mashreq Pakistan CEO Muhammad Hamayun Sajjad said in an exclusive interview with Business Recorder. Pakistanis living in Dubai and other parts of the UAE send around $6.25 billion to $6.50 billion a year to their relatives back home. Mashreq already facilitates a significant volume of these remittances in collaboration with other financial entities. 'We are building a fast, convenient, and transparent financial link between Mashreq Dubai and Mashreq Pakistan to ensure that remittances are received instantly. Currently, remittances are being processed by Mashreq Dubai, and our first goal is to shift this flow onto our Pakistan-based platform,' Sajjad said. 'Our second objective is to identify and address the pain points in the remittance process within Pakistan. By learning from these challenges, we aim to enhance the overall user experience. We see a significant opportunity in streamlining remittances—one of the most vital financial lifelines for the country.' Mashreq has six decades of experience serving people and businesses in major markets around the globe, including the Middle East, US,UK and Europe. It is currently running a pilot project in Pakistan aimed at launching a full-fledged retail digital bank in the country by end of December 2025. Mashreq Dubai operates three entities in Pakistan: Mashreq Bank (in its pilot phase), Mashreq Global Network (hiring and managing employees) and a branch office of Mashreq Financial Institutions Group (providing banking solutions to other financial institutions). It has made a combined investment of over $70 million in Pakistan in the past four years. This is expected to reach $100 million by the end of this year. Trade finance In addition to remittances, the bank is engaged in trade finance, Sajjad said. 'While our Pakistan license does not yet permit trade transactions, Mashreq Dubai continues to handle trade flows with Pakistani banks. The bank is among the top six financial institutions globally for US dollar clearing and operates as a trade hub across 14 countries.' Once licensed fully in Pakistan, Mashreq plans to extend its trade services locally within three to five years. In the meantime, it is focused on establishing fast, reliable financial corridors between the UAE and Pakistan, he added. Separate portals for SME and youth Most banks currently serve SME clients through individual or corporate platforms, which often overlook the specific needs of small businesses. To address this gap, Sajjad said, Mashreq is launching Mashreq Neo Business — a dedicated app and portal designed exclusively for SMEs. For individuals, Mashreq will also offer digital joint accounts, eliminating the need to visit branches. Additionally, the bank is introducing Mashreq Neo NXT, a separate digital platform for youth under 18. While minors cannot open full bank accounts, Neo NXT will enable supervised banking for savings and spending, managed by parents—promoting financial literacy from an early age, the CEO said. Cybersecurity, AI keys to success Mashreq emphasizes a robust cybersecurity framework supported by advanced AI-driven monitoring and fraud detection. The bank aligns its systems with State Bank of Pakistan (SBP) regulations for digital banking, including controls for unusual transactions: automated alerts — such as calls on transfers exceeding Rs2 million — enhance customer safety. Leveraging its digital infrastructure from the UAE, Mashreq plans to replicate this model in Pakistan to build trust and institutional credibility in the evolving digital banking sector. Sajjad said that Mashreq sees a massive opportunity in Pakistan's digital banking gap. According to SBP data there are 90–100 million account holders in Pakistan, out of which only 20 million use online banking. That leaves 70 million largely untapped. Existing banks face high costs and limited digital efficiency, while users still struggle with fraud, access, and reliability. A modern, digital-only bank like Mashreq can fill this gap efficiently and cost-effectively. Nearly 500 Pakistan-based professionals — including 43% senior staff — work remotely for Mashreq Dubai across 18 cities without a local office. Mashreq Pakistan operates with 250-300 staff compared to thousands at conventional banks. Operating remotely — without physical branches — and with a lower number of employees cut banking costs significantly. Mashreq also acknowledges rapid growth in Pakistan's e-commerce landscape over the past 12 to 15 years. Consumer behavior shows a strong shift toward digital purchases over physical retail. The bank sees opportunity in this trend, expecting that increased digitization of payments will eventually help grow e-commerce. Mashreq's infrastructure and partnerships can support the evolving ecosystem of e-commerce payments, logistics, banks, and platforms to ensure smooth consumer adoption, Sajjad added. Copyright Business Recorder, 2025
Express Tribune
04-07-2025
- Business
- Express Tribune
Govt, Alibaba to boost e-commerce
Muhammad Hamayun Sajjad, CEO of Mashreq Pakistan, emphasised that digitalisation is no longer just an option—it has become essential for driving growth. photo: file Listen to article The government is set to partner with Chinese e-commerce giant Alibaba next week in a strategic move to promote the country's exports worldwide. The collaboration aims to strengthen Pakistan's digital supply chain ecosystem by leveraging secure and real-time digital payment solutions such as Raast, the country's instant payment system. Speaking at the 18th International Conference on 'Mobile Commerce 2025', Faiz Ahmad, Chief Executive of the Trade Development Authority of Pakistan (TDAP), announced, "We are partnering with Alibaba in the next week — to revolutionise all Pakistani products that are discovered, sold, and shifted across borders. It is one of the two global e-commerce giants, including Amazon." "Our vision is to create a single unified digital supply chain ecosystem, supported by secured and real-time digital payment solutions like the national instant payment system Raast, being successfully operated by the State Bank of Pakistan (SBP)," he said at the one-day conference organised by Total Communications in Karachi. Ahmad elaborated with a practical example: imagine a small business in Skardu receiving a bulk order from Alibaba. The payment arrives instantly into its mobile wallet via Raast. The same wallet is used to pay a supplier in Karachi through Raast. Inventory is hit, tracked, and restarted without cash, without a bank, and without barriers. "That is the power of digital commerce. That is the vision we are materialising right now. Raast makes this region not only possible but practical and scalable. This is not theoretical. It is actionable. This is the future we are building with your support." TDAP and the Ministry of Commerce are fully committed to driving this digital shift, not just as a policy priority but "as a national imperative," he added. Faisal Mahmood, Head of Digital Public Infrastructure at Karandaaz Pakistan, raised concerns about the central bank's capacity to run pilot phases of projects within the SBP sandbox. He questioned whether the necessary resources — such as funding, expertise, and technical support — are adequately available to effectively support such initiatives. To recall, the SBP launched its sandbox guidelines around two months ago, in May 2025. Soon, it will invite all entities — regulated or unregulated — such as banks, fintechs, and startups, to test their digital business ideas and potential solutions in a controlled environment with relaxed regulations during the testing phase. Ali Imran Khan, Deputy CIO at Meezan Bank, emphasised that open banking represents the future of financial services. He explained that it enables financial institutions to securely share customer data with third parties, allowing for the development of personalised financial solutions. Importantly, this data sharing only occurs with the explicit consent of account holders. Muhammad Hamayun Sajjad, CEO of Mashreq Pakistan, remarked that cash has remained the "king of the ring" so far. However, he emphasised that digitalisation is no longer just an optionit has become essential for driving growth. The one-day conference hosted four panel discussions, including: (1) From Experiment to Execution: The Role of Regulatory Sandboxes in Digital Financial Services; (2) From Legacy to Agility: The Future of Financial Services with Open Banking; (3) Navigating Payments, Lending and Technologies in E-Commerce; and (4) The Rise of Digital Wallets and Its Relevance to Pakistan.
