Khurram Mumtaz spearheads the expansion of Mashreq NEO’s offerings into the Pakistani market. With 23 years of experience in financial services, Khurram is a seasoned expert in consumer banking and digital transformation. His career spans key domains, including distribution, operational risk management, product development, asset lending, employee banking, strategy and transformation, data analytics, and digital banking.

Khurram’s leadership background includes 11 years at Standard Chartered Pakistan and nine years at Citibank. He holds an MBA in Finance from Washington International University.

Following are the edited excerpts of a recent conversation BR Research had with him:

BR Research: As Mashreq prepares to enter the Pakistani market, what are the key opportunities and gaps in the country’s banking landscape that you believe Mashreq NEO can address, and how do you plan to capitalize on them?

Khurram Mumtaz: Pakistan’s banking sector is on the cusp of a significant shift. While significant progress has been made over the last several years, only 60 percent of adults have formal bank accounts, and only a small percentage of account holders’ women, the opportunity to expand financial inclusion in the country is immense, and we see digital transformation as key. As of early 2024, there are 111 million internet users and mobile coverage has reached nearly 78 percent, providing the infrastructure needed for digital-first solutions. This represents a golden opportunity for financial institutions like Mashreq, that seek to integrate seamlessly into the fabric of Pakistani society, serving a broad spectrum of customers and contributing to the economic empowerment of underrepresented segments.

Mashreq has become the first to receive a restricted license from the State Bank of Pakistan (SBP) to commence pilot operations as a digital retail bank in Pakistan. As we look forward, Mashreq is ideally placed to have an impact on the banking sector and the overall Pakistani market, by creating a digital-first banking experience that empowers customers, to open accounts, transfer money, and access financial products, regardless of their location.

BRR: How will Mashreq NEO leverage digital innovation to disrupt traditional banking in Pakistan?

KM: In alignment with our aim of being the region’s most progressive bank, our goal is to reinvent the essence of banking itself. We are setting out to change how people in Pakistan think about and experience banking, putting convenience, speed, and security at the heart of everything we do. Our vision goes beyond traditional banking; our aim is to create a digital-first experience that feels as personal as it is powerful, one that empowers every user to handle their finances easily.

Through platforms like NEOBiz, we offer a complete banking experience that will address the new-age consumers’ needs. Our real opportunity lies in meeting consumers in a truly personalized and secure environment, exactly where they are – whether on their mobile devices or anywhere else. Advanced technologies – such as artificial intelligence, blockchain, and data analytics – will allow us to provide hyper-personalized services that adapt to each customer’s unique financial needs. And, by reducing our operational costs through this digital infrastructure, we can pass those savings on to our customers with better rates and lower fees.

BRR: How does Mashreq NEO plan to contribute to financial inclusion in Pakistan, particularly for the unbanked population?

KM: Financial inclusion is central to our mission in Pakistan, and indeed to our corporate strategy globally and in Pakistan. The high unbanked rate and limited financial access for SMEs underscore the need for a digital solution. We are specifically targeting the underserved – especially rural populations, women, and SMEs – with branchless banking and user-friendly applications that bring financial empowerment directly to their hands.

Mashreq also aims to launch educational programs to improve digital literacy and financial awareness. These initiatives will help users understand and utilize the full range of our offerings, fostering a deeper integration into the formal economy. By tailoring our products to fit local needs and empowering the whole population, Mashreq NEO is contributing to greater financial inclusion and therefore enabling sustainable economic growth.

BRR: With growing digital penetration, financial cybercrime has also surged. Can you share how Mashreq NEO plans to ensure cybersecurity and protect customer data?

KM: With digital transformation being a recent evolution in Pakistan, it is understandable that there will be cybersecurity concerns. At Mashreq, protecting our customers’ data and financial security has always been and will remain core to our mission. We have built a robust, multi-layered security system that combines advanced AI technology with real-time threat detection, keeping us a step ahead of potential risks. Every transaction is fortified with multi-factor authentication, end-to-end encryption, and sophisticated fraud detection algorithms.

But our commitment goes beyond just technology. We view secure banking as a partnership with our customers – hence, we aim to seek every opportunity to provide clear guidance to help them stay safe online. Meanwhile, our teams receive ongoing training on the latest cybersecurity developments to strengthen our defenses relentlessly.

Ultimately, our goal is for every customer to feel not only secure but truly confident each time they interact with us.

BRR: As Mashreq brings experience from the MENA region, can you share some trends and experiences that will support the launch and growth of Mashreq NEO in Pakistan?

KM: A key learning from our MENA experience is that convenience is king. Consumers want fast, accessible, and digital solutions to manage their finances. That is why platforms like NEO and NEOBiz in the UAE have been so successful; they enable customers to handle everything from payments to savings on their devices.

In Pakistan, we envision implementing the same approach, but plan to customize it with a focus on local needs. For example, our Shariah-compliant financial products are designed to cater to Pakistan’s demand for Islamic banking, which currently makes up about 35 percent of the country’s financial assets. We will also support financial inclusion and literacy, which is a priority here, given the large unbanked population. ivBy tailoring our proven models to the Pakistani market, we are confident Mashreq NEO can become a leader in digital banking here.

BRR: How do you see the future of digital banking evolving in Pakistan, and what role will Mashreq NEO play in this transformation?

KM: We see great potential for growth in digital banking in Pakistan, thanks to increasing smartphone use and a young, tech-savvy population. We envision a future where digital banking becomes the default for most people, making financial services more accessible than ever.

Mashreq NEO’s role will be to help drive this shift. We are not just expanding access. We are introducing cutting-edge technology and customer-focused innovations that make banking easy and responsive. By combining our global expertise with in-depth insights with our deep understanding of Pakistan’s local and cultural nuances, we are aiming to lead the way in digital financial empowerment across the country.

BRR: How do you plan to collaborate with local fintech startups and technology firms to drive innovation and growth in Pakistan’s financial sector?

KM: Partnerships are essential for growth in Pakistan, as they are in our other markets. Collaborating with local fintechs and technology firms enables us to co-create solutions that resonate with Pakistan’s unique financial landscape. These partnerships help us tap into local insights and consumer behaviors, allowing us to adapt our services more effectively and reach customers with relevant, high-impact offerings.

By nurturing a collaborative ecosystem, we are not only enhancing our customer experience but also supporting the growth of Pakistan’s fintech sector.

BRR: What are your expectations for Mashreq NEO’s impact on the Pakistani banking industry in the next 2-3 years, and how will you measure the platform’s success in the market?

KM: In the coming years, we don’t just want Mashreq to be a bank; we want it to be a beacon of change and trust in Pakistan’s digital banking landscape. Our success will be measured by more than just numbers. It will be reflected in the lives we touch, the people we bring into the formal banking world, and the small businesses we help thrive. We are driven by a deeper purpose which is to make banking more inclusive, accessible, and empowering for everyone.

Our goals are bold because our vision transcends mere figures. It is about the impact we will have on people’s lives, giving them the tools to grow, build, and achieve their dreams. We will track every step from customer acquisition to engagement and financial inclusion, ensuring we stay true to our mission.

At the heart of our operations, we are not just setting goals; we are setting new standards for customer experience, innovation, and financial empowerment in Pakistan. We want to redefine what banking means for people here, to create a future where everyone has the opportunity to rise every day.

BRR: What unique services and features will Mashreq NEO offer to attract and retain customers in Pakistan?

KM: Mashreq NEO is all about giving customers a seamless experience. We are introducing features such as instant account opening, real-time money transfers, and digital wallets, with round-the-clock AI-driven customer support.

To make our offering even more relevant, we are developing Shariah-compliant financial products and wealth management solutions specifically for the Pakistani market. By catering to local needs and creating a user-friendly experience, we are confident that Mashreq NEO will quickly become the go-to Bank for All in Pakistan.