Nadeem Hussain, a seasoned entrepreneur, and financial inclusion advocate, has left a three-decade corporate journey to lead the ‘Fourth Coming’ with Raqami Islamic Digital Bank (RIDB). After successful ventures like Tameer Microfinance Bank and Easypaisa, Hussain’s focus on startups has led to Planet N, boasting the largest portfolio in Pakistan with 50+ investments across eight countries.
In an exclusive interview with ProPakistani, Hussain shared insights into RIDB’s mission to address financial inclusion challenges. The bank, one of the five retail digital banks issued NOCs last year, aims to leverage open banking through Banking as a Service (BAAS) to introduce Shariah-compliant services. The equity partners, Kuwait Investment Authority and Enertech Holding Co., bring substantial financial strength to the venture.
Hussain emphasized RIDB’s commitment to a swift and inclusive banking experience, challenging conventional banks’ prolonged processes. The bank plans to run a pilot with seven partners, expanding to 100–150 post State Bank approval. Notably, RIDB aligns with the cultural shift towards Shariah-compliant banking, with over 80-85% preference in recent research.
Islamic Banking in Pakistan has witnessed significant growth, with assets surging by 181% and deposits by 156% from September 2019 to September 2023. The market share of Islamic banks reported a 40% increase, reaching 22.5%. The demand for Shariah-compliant financial services is driven by religious beliefs, contributing to financial inclusion.
Hussain also addressed the digital payments landscape in Pakistan, acknowledging the impact of Raast, a Person to Merchant (P2M) service launched by the State Bank. However, he emphasized the need for a cultural shift away from a cash-based economy and proposed a three-year tax immunity for retailers to encourage their participation in the digital economy.
