In a country known for its burgeoning population of over 240 million, a significant leap towards modern financial inclusivity has just been made with the pilot launch of the Raqami Islamic Digital Bank. As Pakistan’s first fully digital and Shariah-compliant retail bank, this initiative, facilitated by Codebase Technologies, aligns with the strategic vision set by the State Bank of Pakistan. The nation’s aim to achieve 75% financial inclusion within the next three years is well underway, shining a light on the substantial gaps that persist within the financial sector. Despite mobile penetration exceeding 75% and the youth comprising a significant portion of the populace, Islamic banking accounts for only a modest 19% of the total banking assets. This discrepancy highlights a pronounced need for agile, ethical, and accessible financial solutions that can cater to the underserved and unbanked sectors of the population.
Bridging the Financial Gap
Raqami seeks to address this evident disparity by offering a mobile-first banking experience, developed on the Digibanc™ platform. Codebase Technologies has engineered it to effectively serve Pakistan’s vast unbanked community. The platform provides pivotal features such as simplified onboarding, Takaful insurance integration, and seamless connectivity with Raast, Pakistan’s sophisticated real-time payments network. Umair Aijaz, the Chief Executive Officer of Raqami Islamic Digital Bank, heralds this development as a monumental stride in providing inclusive financial services. The current pilot banking license restrictively frames the opportunity, marking the start of what promises to be a transformative journey in banking. Employing a strategic blend of technology and adherence to Islamic principles, Raqami builds a bridge for populations previously marginalized or ignored by conventional banking methods.
To overcome structural impediments to financial access, Raqami utilizes the modular architecture of Digibanc. This design allows for the swift introduction of essential features, including tiered Know Your Customer (KYC) onboarding processes, comprehensive digital Takaful insurance, and mobile-enabled peer-to-peer payments. A pivotal aspect of this digital transformation, as emphasized by Raheel Iqbal, Managing Partner at Codebase Technologies, is the ambition to transcend the scope of a mere project. This mission aims to create a scalable, secure, and impactful digital banking service that reflects the spirit of innovation and ethical financial practices intrinsic to Islamic banking. This effort seeks to reshape the financial landscape, enabling economic participation across various societal segments that have remained excluded from traditional banking facilities.
Digibanc™ Platform: A Technological Backbone
At the core of Raqami’s pilot launch is Digibanc™, a robust cloud-native, microservices-based, and API-driven platform. This innovative foundation not only facilitates rapid innovation and regulatory compliance but also integrates embedded finance capabilities essential for a diversified financial ecosystem. The platform, already a trusted solution among institutions across the Middle East, North Africa, South Asia, and the Asia-Pacific regions, enables these entities to scale their digital banking endeavors within diverse regulatory and market environments. Digibanc’s adaptability has been pivotal in many institutions expanding their reach and capabilities, making it an ideal choice for this groundbreaking initiative.
By adopting Digibanc, Raqami is poised to deliver banking services that meet both global standards and local needs, ensuring seamless integration into a variety of financial landscapes. Its cloud-native nature eliminates traditional technological barriers, allowing the bank to rapidly iterate and introduce new features easily. For Pakistan, this means transitioning from traditional, limited banking approaches to a more dynamic, flexible model that offers ethical banking in compliance with Shariah laws. In doing so, the bank leverages a dual advantage of cutting-edge technology and principled banking to create meaningful impacts on the broader financial sector and economy.
Toward a New Era of Banking in Pakistan
Raqami aims to bridge the gap in financial services by offering a mobile-first banking experience via the Digibanc™ platform. This innovative platform by Codebase Technologies is crafted to cater to Pakistan’s sizable unbanked community. With features such as streamlined onboarding, Takaful insurance integration, and enhanced connectivity with Raast, Pakistan’s advanced real-time payments network, it sets ambitious goals for inclusive financial services. Umair Aijaz, CEO of Raqami Islamic Digital Bank, views this development as a significant milestone for financial inclusion. Though currently limited by a pilot banking license, it promises a transformative banking journey. Combining cutting-edge technology with Islamic principles, Raqami aims to connect communities neglected by traditional banks. Digibanc’s modular design facilitates rolling out vital features like tiered KYC processes, digital insurance, and mobile-friendly peer-to-peer payments, reshaping financial access for diverse societal groups traditionally excluded.
