ISLAMABAD: U Microfinance Bank (U Bank) and Raqami Islamic Digital Retail Bank Ltd. (RIDBL) have entered into a strategic interoperable partnership to enable access to branch banking services to RIDBL customers through U Bank, marking a significant milestone in the digital banking landscape of Pakistan.

With this innovative collaboration, U Bank will extend the Shari’ah-compliant services of its extensive branch and branchless banking channels, including its network of 375+ brick-and-mortar branches nationwide to RIDBL, facilitating their digital banking clientele with seamless physical Cash In/Cash Out (CICO) transaction services and other branch banking facilities.

This collaboration signifies the coming together of the traditional and digital banking worlds, opening a new era of accessibility and convenience for customers across Pakistan.

The regulatory framework for digital banks, which was unveiled by the State Bank of Pakistan (SBP) in January 2022, encourages such partnerships in a bid to maximize the utilization of brick-and-mortar infrastructure, with specific objectives to optimize financial access to the citizenry while driving down the cost of financial services for the end customer.

The partnership was officiated in a recent ceremony held in Islamabad in the presence of Mohamed Essa Al Taheri, President & CEO -U Bank and Umair Aijaz, CEO -RIDBL, as well as other members of both organizations.

Copyright Business Recorder, 2024