KARACHI:
Financial Technology, more commonly known as FinTech is a rapidly growing field that encompasses various technologies and software designed to enhance and automate traditional financial services for businesses and consumers. It has simplified financial transactions and made them more accessible and cost-effective. FinTech has streamlined operations, increased security, and improved customer experiences by incorporating technologies such as artificial intelligence, blockchain, etc.
The growth of FinTech has been driven by various trends such as the rise of digital banking, which allows customers to manage their finances, request loans, and purchase insurance through digital platforms. Another trend is the utilisation of blockchain technology, which allows for decentralised transactions without intermediaries, offering transparency, security, and efficiency. In Pakistan, blockchain technology has the potential to transform different sectors including cross-border remittances, supply chain management, and land registries. By leveraging mobile-based solutions, FinTech companies can extend financial services to underserved areas promoting financial inclusion. The growing use of smartphones provides a favourable environment for FinTech solutions as individuals can access services conveniently through their mobile devices.
The convenience and accessibility offered by mobile applications and online platforms have contributed to the rapid adoption of FinTech solutions in the country. Skilled human capital will be required to improve innovation and success in the field. Cybersecurity is crucial to protect sensitive financial data and earn customers’ trust. Promoting financial literacy and expanding digital infrastructure to ensure reliable connectivity, especially in rural areas, are important steps towards realising the full potential of FinTech in Pakistan. Collaborating with traditional financial institutions can help navigate regulatory challenges and leverage existing infrastructure.
Dr Intikhab Ulfat
Karachi
Published in The Express Tribune, July 16th, 2023.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
