FinTech – The Way Forward to Pakistan’s Digitalization

Fintechthe way forward pakistan

Fintech companies are providing digital wallets and payment gateways in Pakistan to give financial services, online transactions, and business opportunities.

The new technologies and innovations have rolled out fundamental improvements in traditional financial methods for making rapid money transactions and automating financial services. With such advancement in this area, a financial technology called FinTech was emerged in the 21st century for assisting organizations, banks, and business persons in order to manage their payment transactions and other financial operations.

FinTech – Revolution

Talking of Pakistan, FinTech has offered amazing opportunities and innovation in the banking sector for payment methods, billing, loans, and wages. The penetration of electronic gadgets, digital banking is now much feasible with phone applications and web services. Currently, Digital technologies are the utmost survival for Pakistan struggling phase, and due to branchless banking and enhance payments systems, new startups have acquired robust support on account of the FinTech revolution.

Despite the fragile condition of our economy, FinTech companies are booming in Pakistan due to their convenient nature and fast process. Small startups and SME’s are keenly trying to acquire FinTech services to unlock the new digital services. It is very self-evident that there is a huge potential of FinTechs in SEM’s market since they are developing 90 percent of business around the globe along with more than 50 percent of the employment rate.

Banks are technically considered as Fintechs, but providing feasible branchless facilities to individuals, FinTechs are now playing a significant role in convenient financial transactions which includes mobile banking, money lending, and e-wallets. In Pakistan Telenor Microfinance Banks (Easypaisa), JazzCash, UBL Omni, Konnect by HBL are the major digital links for individuals providing branchless and online financial services. Moreover, other E-money institutions in Pakistan are Finja, NayaPay, SadaPay, and SadaTech, etc are providing an adequate and trustworthy digital financial assistance.

The banking sector of Pakistan has now totally attuned with the importance of FinTechs, that’s why the State Bank of Pakistan (SBP) and Government are trying to further revamp the existing and introduce new digital financial institutions in the country for enhancing the payments infrastructure to accelerate the trend of digitalization. SBP has also launched digital cheques clearing and unified QR codes for payments in Aug 2021.

To give a taste of rapid money transactions, around 45 FinTechs are currently operated in Pakistan, in which 3 are providing lending services and others are only payment-centric for consumers. It is good to see, that we are making progress in the digital sector since it is an essential way forward to a strong economy. To promote the vision of Digital Pakistan, more startups should be launched in the financial eco-system to provide such facilities and enhance the trend of branchless financial transactions.

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