Fintech Firms in Pakistan Continue to Receive In-Principle Approval from State Bank to Offer Digital Financial Services

Supported by an upcoming generation of talented tech professionals, the Fintech industry is evolving rapidly in Pakistan. Fintechs could begin to make major contributions to the Asian country’s nearly $400 billion GDP.

Professionals leading the country’s finance ministry and its reserve bank (the State Bank of Pakistan or SBP) are planning to introduce initiatives that will improve the Pakistani economy.

New companies or businesses now operating in the country’s Fintech space such as SadaPay aim to enable greater financial inclusion while offering innovative and user-friendly digital financial services.

As reported by the Business Times, Mutaher Khan, an IT worker who’s been following the growth of the Fintech sector, revealed that they’ve seen over a dozen firms obtaining in-principle approval from the SBP in order to provide different types of financial services. These include establishing digital commerce gateways and bill payments facilities.

Khan claims that payments, bills and money transfers are some of the key areas where there’s considerable activity, along with a shift towards mobile and Internet banking – which may have accelerated following the COVID-19 outbreak.

Khan, who’s working on a directory for the Pakistani technology industry, called DataDarbaar.com, where you can obtain all the information on domestic startups and new technologies, noted that a lot of the growth on this front is being driven and supported by telco-backed Fintech apps, such as JazzCash and Easypaisa.

Khan confirmed that these apps have acquired a significant user base via their agent-based network that has now penetrated some of the most remote areas in Pakistan. He explained that  the same over-the-counter or OTC transactions have now been digitized. Meanwhile, there are traditional Pakistan banks that are also developing a strong online presence so that they can remain competitive in this fast-evolving Fintech space, Khan revealed.

In another update from the Business Times, the news outlet reported that there might be some scope for Pakistan and Singapore to work on Fintech projects and the broader tech industry as well. Singapore is now home to a major Fintech sector so there could be a lot that Pakistan might be able to learn from these initiatives.

An industry professional suggested that these collaborations might be as simple as knowledge exchange programs, which has become quite popular due to events like the Singapore Fintech Festival (SFF) where people are able to participate in masterclasses conducted by experienced business owners.

According to industry professionals, there could be a major investment opportunity for investors looking to establish some type of operation in Pakistan. Golden Gate Ventures and Stripe Asean are working on some projects, however, there’s still a lot of room for more growth and development.

It’s worth noting that Pakistan still faces many socioeconomic challenges with the vast majority of the nation’s population not having access to modern banking services, quality education, or decent job opportunities.

Pakistan has suffered from many decades of corruption and was also dragged into the lengthy issues and problems in neighboring Afghanistan after 9/11.

Most mainstream business and global financial services offered by platforms such as Amazon and PayPal (among many others) are still not available in Pakistan because the nation’s regulators have failed to implement a proper framework so that businesses can operate smoothly.

Despite these issues, Pakistan is home to one of the largest freelancer communities in the world and the country is on track to potentially become a leading or more prominent world economy by 2030. Pakistan is also considered a “middle-power” (so not completely a third-world country) which could be, in large part, due it being a nuclear power.

Source

Related Articles

Pakistani Online Payments Fintech SadaPay Explains Why Customer Experience with a Human Touch Is So Important

The team at SadaPay, a Pakistan-based online payments provider, notes that when products are developed with technology at the “core of the value proposition,” the customer interactions “tend to be digital as well.” As mentioned in a blog post by the Fintech firm, the human… Read More

The post Pakistani Online Payments Fintech SadaPay Explains Why Customer Experience with a Human Touch Is So Important appeared first on Crowdfund Insider.

How is Fintech Developing During COVID? The Global COVID-19 Fintech Market Rapid Assessment Study Answers Your Questions

  The Cambridge Centre for Alternative Finance (CCAF) released a report this week entitled The Global Covid-19 Fintech Market Rapid Assessment Study. The report seeks to better understand the development of Fintech during a time of a global pandemic. The research was supported by the… Read More

The post How is Fintech Developing During COVID? The Global COVID-19 Fintech Market Rapid Assessment Study Answers Your Questions appeared first on Crowdfund Insider.

Unsecured Cloud Configurations Exposing Information in Thousands of Mobile Apps

Abstract When approaching the development of a mobile application, one of the key design decisions revolves around the server side aspect of the application. Specifically, storage of information relevant to the app’s usage, as well as the backend API’s allowing the app to query the server for information in real time (as opposed to static … Read More

The post Unsecured Cloud Configurations Exposing Information in Thousands of Mobile Apps appeared first on Zimperium Mobile Security Blog.

Fintech Adoption in Pakistan and Digital Transformation Supported by Local Fintechs Could Improve Tax Collection: PM Imran Khan

The team at Islamabad-based Fintech firm SadaPay has been introducing innovative and appealing financial products and services that are focusing on younger consumers in Pakistan. SadaPay is offering black, sleek premium spending cards which may be comparable to some of the cards offered by European… Read More

The post Fintech Adoption in Pakistan and Digital Transformation Supported by Local Fintechs Could Improve Tax Collection: PM Imran Khan appeared first on Crowdfund Insider.