The establishment of digital banks in Pakistan will pave the way for a significant digital transformation in the banking and financial sectors, as well as other sectors in the future.
Rabia Azfar Nizami, an IT expert, recently stated in a media roundup that the policy of digital banks states significant milestones in the digital transformation of banking services, which will provide customers with an end-to-end cutting-edge experience.
As an example, she stated that digital banks in various European countries do not require papers or a visit to any branch, yet they are capable of banking without the assistance of phone bankers.
Financial literacy and use of digital channels are limited in Pakistan for a variety of reasons, including customers’ lack of trust in the digital banking system, according to Rabia, who has worked in the IT industry for over two decades and is the Country Head at Jaffer Consulting.
The banking regulator intends to launch five digital banks in Pakistan in the first stage, with the goal of increasing banking sector penetration in a country with a small banked population.
Cyberattacks in Pakistan have been increasing, and the threat will continue to grow unless the system is protected through necessary legislation and lawmaking, according to her.
She stated that the IT department of any organization should be responsible and vigilant to protect their organization’s systems, citing various reasons for rampant hacking activities in various private and public sector entities, particularly banks.
The State Bank of Pakistan (SBP) has a very strict policy regarding the security and operation of IT infrastructure. She claims that if banks do not follow the rules, they will face consequences.
She stated that as the threat of cyberattacks grows, so does Pakistan’s need for cyber security experts. However, some cybersecurity tools and systems are advanced enough that they can be used on existing systems rather than creating new ones.
To read our blog on “Under the new SBP framework, Tech and IT companies are permitted to establish digital banks,” click here.
