OPINION
S.M. Talib Rizvi
FinTech – shaping the future for the better
gy that digitizes, augments and streamlines traditional financial services that has been popularised by the influx of startups trying to digitize financial services in Pakistan and the rest of the world. The basic idea behind fintech is to use technology and automation to enhance the processes involved in financial services. Fintech is usually wrongly associated with being just “an app”. The app is simply one of the tools that fintech companies use to offer services. Fintechs consist of a wide array of activities such as money transferring through smartphones, depositing a cheque, and applying for credit through the use of digital platforms. Furthermore, the scope of FinTech’s applicability ranges from industries such as education, retail banking, consumer, and commercial banking to non-profit organizations. The services offered by fintechs are varied in nature and are more efficient than traditional banking entities due to the use of ong gone are the days where the idea of opening a technology in their processes. The use of technology has allowed bank account made you shudder with the dread of for greater flexibility for the consumer. Transactions are faster and taking an entire day out to go to the bank, wait in the use of high-level security ensures their safety. Additionally, finline, sign a bunch of papers, provide what feels like techs have also played a crucial role in leveling the playing field for countless identity card copies, and be told to come the underrepresented communities. The brick-and-mortar banks back in a couple of days to finalise your account did not cater to such demographics but fintech doesn’t differentiopening and getting your cheque book. If you were lucky, your ate - all you usually need is a phone and the internet. It allows all ATM card might get to you in less than a month. customers to carry out transactions with the same ease. But in much of the world, and hopefully now in Pakistan, a Given the strides that are being made by fintechs towards process as simple as opening a bank account will become signififinancial inclusion and ease of access, the State Bank of Pakistan cantly easier through the powers of fintech. The new technology (SBP) is on a mission to revamp and revolutionize the financan be shockingly simple. After downloading a mobile applicacial ecosystem of Pakistan. For this purpose, the SBP has taken tion, all you need to do is to make a couple of taps on your mobile significant steps in the recent past. For the first time in this phone to open your bank account or to pay online through your country’s banking history, Non-Resident Pakistanis (NRPs) can debit card instantly without leaving your house. now remotely open a bank account in Pakistan through entirely Fintech possesses the power to revolutionize the way we digital and online processes. This is possible due to Roshan Digital live and this is just one example of how FinTech will augment our Account (RDA), which features services such as Roshan Apni lives. So what is fintech? It is a catch-all term for any technoloCar, Roshan Apna Ghar, Naya Pakistan certificates and Samaaji Khidmat. Crucially, this initiative supports investment into Pakistan’s stock market and property market, which will serve as an important driving force to augment the development of Pakistan’s economy. These steps by the regulator have proven fruitful, as funds received via RDA have grown exponentially from 7 million USD to 2+ billion USD in S.M. Talib Rizvi a span of 10 months. is a senior professional As a part of the National Digital Infrastructure Development Strategy, the State Bank of Pakistan has launched a micropayment gateway called RAAST. This is a key step banker with varied experience towards financial inclusion and will bring about seismic changes to Pakistan’s economy. spanning over 25 years Particularly, RAAST will provide financial inclusion for underrepresented and unbanked communities, a secure platform for digital payments, and will spearhead the significant transition towards a paperless, green economy. This shows that the regulator is akin to
Pakistan may be late to the party, but that doesn’t mean it’s even close to last call
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COMMENT
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