SBP Introduces VPN-Based Portals to Enhance Financial Security

As Pakistan’s financial sector continues to embrace digital transformation, the State Bank of Pakistan (SBP) has announced a significant shift in its online access system. Starting May 30, 2025, the SBP will transition from web-based access to VPN-based portals to enhance security and streamline regulatory processes.

This move is part of SBP’s ongoing efforts to strengthen cybersecurity measures in response to increasing digitization in the financial industry. The transition will also impact all Regulated Entities (REs), including banks, financial institutions, and other stakeholders that interact with the central bank’s online portals.

Why is SBP Shifting to VPN-Based Access?

The financial sector is a prime target for cyber threats and security breaches, making secure digital communication a necessity. Moreover, traditional web-based access can be vulnerable to hacking attempts, unauthorized access, and data breaches.

By implementing VPN-based access, the SBP aims to:

• Enhance security by encrypting data transmission
• Prevent unauthorized access to sensitive financial information
• Ensure a more reliable and seamless digital experience for regulated entities
• Strengthen compliance with global cybersecurity standards

Regulatory Approval System (RAS) and Service Desk Portal

In addition to this major transition, the SBP has also digitized its regulatory processes to improve efficiency and transparency. A key initiative in this regard is the Regulatory Approval System (RAS), which streamlines the process of receiving requests and proposals from regulated entities (REs) and delivering SBP’s regulatory decisions digitally.

To further support regulated entities, the SBP has introduced a Service Desk System—a dedicated complaint management portal designed to resolve issues related to SBP-hosted platforms like RAS.

What Regulated Entities Need to Do

As the deadline for the transition approaches, regulated entities have been advised to take proactive measures to ensure compliance and a smooth shift to the new system.

Key Steps for REs:

• Obtain Multi-Factor Authentication (MFA) Accounts: The SBP has directed financial institutions to acquire the necessary MFA accounts well in advance. MFA adds an extra layer of security by requiring multiple verification steps before granting access.
• Ensure VPN Readiness: Banks and financial entities must set up secure VPN connections that meet SBP’s security standards.
• Prepare for Seamless Integration: Institutions should test their VPN access and ensure that their IT teams are familiar with the new system before the May 30 deadline.

What This Means for Pakistan’s Financial Sector

The SBP’s transition to VPN-based access marks a significant step towards a more secure and digitally advanced financial system. As cybersecurity threats continue to evolve, this move aligns with international best practices, also ensuring that Pakistan’s financial institutions remain protected from potential cyberattacks.

With improved security, efficiency, and regulatory compliance, this initiative will surely strengthen trust in Pakistan’s banking sector, benefiting both financial institutions and customers in the long run.

See Also: Breaking Barriers: How Digital Innovation is Empowering Women in Pakistan