In the heart of Kabul, amidst the evolving landscape of Afghanistan’s financial sector, one institution stands as a testament to the power of innovation, resilience, and unwavering commitment to social and economic development. Afghan United Bank (AUB), founded in 2007, has not only transformed the banking experience in Afghanistan but has become a key player in the region’s international trade and financial inclusion efforts. What began as a modest endeavor to modernize Afghanistan’s banking system has since evolved into one of the country’s most impactful private commercial banks.
With a vision to provide both Islamic and conventional banking services that align with global best practices, AUB has grown into a national powerhouse with an impressive network of 35 active branches and 15 banking booths. The bank’s commitment to financial inclusion and digital governance has enabled it to serve millions across Afghanistan, including those in remote, underserved areas. But it’s the bold steps taken by AUB’s leadership that have shaped the bank’s trajectory—from revolutionizing mobile banking to forging critical international trade partnerships.
A Vision Realized: From Startup to Industry Leader
The story of Afghan United Bank began in 2007 with the leadership of Mr. Matiullah Faeeq, CEO, and Mr. Javid Jaihoon, Owner, who recognized the transformative power that a modern banking system could have on Afghanistan’s economy. At a time when Afghanistan was grappling with economic challenges, the pair identified an opportunity to provide sustainable financial services while bridging the gap between Afghanistan and the global economy.
Incorporated under the licensing regulations of the Central Bank of Afghanistan (Da Afghanistan Bank), AUB began operations with a clear objective: to create an institution that not only adhered to the nation’s regulatory framework but also introduced innovative banking products and services that would meet the diverse needs of its population. This vision has since become reality.
Trailblazing Financial Inclusion
One of the key factors driving AUB’s success is its unwavering focus on financial inclusion. Afghanistan’s rugged terrain and widespread rural population presented significant challenges to conventional banking. Yet, AUB saw these challenges as opportunities.
By pioneering the branchless banking model, AUB extended its services beyond traditional brick-and-mortar branches to remote villages and underserved communities through partnerships with telecommunication companies. Today, the bank’s 200+ sub-agent locations across Afghanistan ensure that millions of Afghans have access to financial services, whether via m-wallets, mobile phones, or ATMs. This innovative approach has been pivotal in a country where access to banking is often limited by geography, infrastructure, and traditional barriers.
AUB’s digital banking services, including QR code payments and system-to-system integrations, have played a key role in modernizing the financial landscape. The bank’s adoption of cutting-edge mobile banking solutions has also positioned it as a leader in digital governance, delivering secure, efficient, and accessible banking services to people from all walks of life.
Forging Global Trade Ties: AUB’s International Expansion
As Afghanistan looks to strengthen its economic ties with the global market, Afghan United Bank has positioned itself as a strategic partner for international trade. The bank’s robust network of correspondent banks in key global financial hubs, including Bahrain, UAE, Spain, China, India, and Turkey, enables it to seamlessly facilitate cross-border transactions and foreign remittances for its clients.
In FY 2024, AUB achieved a significant milestone by executing trade transactions valued at over 3 billion INR with Indian partners. This accomplishment underscores the growing importance of Afghanistan as a trading partner, while positioning AUB as the go-to bank for importers, exporters, and cross-border businesses looking to expand their reach in the region.
The bank’s services, such as Letters of Credit (LC), Bank Guarantees (BG), and Foreign Exchange (FX), have proved invaluable to Afghan traders seeking stable, efficient platforms to conduct business. As Afghanistan continues to develop its trade relationships, particularly with neighboring India, AUB’s role in this dynamic is poised to grow even further.
Empowering Humanitarian Efforts
Afghan United Bank’s impact isn’t limited to traditional banking and trade. The institution has long recognized the importance of giving back to society, particularly in a country still recovering from decades of conflict. Through its partnerships with UN agencies, AUB has been instrumental in the distribution of humanitarian aid across Afghanistan.
The bank’s long-term agreements with UNICEF and other humanitarian organizations have enabled AUB to disburse over 890 million Afghanis in aid, ensuring that funds reach those in need in a transparent, efficient, and secure manner. This initiative has garnered significant praise from international organizations for its reliability and timeliness, further cementing AUB’s reputation as a bank with a conscience.
Awards & Recognitions: A Global Leader
Afghan United Bank’s innovative approach and strong commitment to excellence have been recognized globally. Among the many accolades, the bank has received the International Business Award for being the Best Commercial Bank in Afghanistan. The International Peace Achievement Award Council has also honored the bank with a Certificate of Achievement for its significant contributions to humanitarian efforts and its role in bringing peace to the region.
These awards are a testament to the leadership of Mr. Matiullah Faeeq and Mr. Javid Jaihoon, who have led AUB through significant challenges, always keeping the bank’s mission at the forefront. The institution’s continued success is a direct result of their visionary leadership, commitment to integrity, and focus on long-term sustainability.
The Future: Expanding Horizons
As Afghanistan emerges from a period of recovery, AUB is well-positioned to lead the next wave of growth. The bank’s strategic roadmap includes expanding its network of branches and sub-agents, enhancing its digital infrastructure, and deepening its international trade relationships.
AUB is particularly focused on enhancing its role in promoting Afghanistan as a key trade hub in Central Asia. The bank plans to launch new financial products aimed at small and medium-sized enterprises (SMEs) and agriculture financing, sectors critical to the country’s economic future. The bank’s commitment to sustainable growth and financial accessibility will continue to shape its development in the coming years.
Furthermore, AUB is dedicated to staying at the forefront of financial technology. The next phase of its digital evolution will focus on leveraging artificial intelligence (AI) and blockchain technology to improve customer experience, reduce fraud, and streamline cross-border payments.
A Legacy of Transformation
Afghan United Bank’s journey from a startup in Kabul to a leading financial institution is a testament to the power of vision, innovation, and perseverance. Through its unique blend of modern banking, social responsibility, and strategic partnerships, AUB has become a cornerstone of Afghanistan’s financial system and a model for emerging markets worldwide.
In the face of adversity, AUB has not only weathered the storm but has thrived, making a lasting impact on the lives of millions of Afghans and businesses. As it continues to evolve, Afghan United Bank remains a powerful symbol of what is possible when banks don’t just serve their clients—they serve their communities, their country, and the world.
Website: www.afghanunitedbank.com
Head Office: Zarghona Maidan, Shahre-e-Naw, Kabul, Afghanistan
CEO: Mr. Matiullah Faeeq
Owner: Mr. Javid Jaihoon
Annual Turnover: USD 450 million
Trade with India: INR 3+ Billion (FY 2024)
