By: Saba Ghani
PhD Research Scholar
FinTech (Financial Technology) is considered one of the crucial parts of every country’s success. Like other countries in the world, Pakistan is also getting increased FinTech activities in the corporate sector including the usage of software, mobile banking, and other technology usages which ultimately improve the automated system and minimize the errors attached to the usage of the traditional financial system. FinTech appreciates the financial services in Pakistan with improved usage of blockchain technology, cloud computing and big data.
In a nation like Pakistan which is in the developmental phase, the rise of Fin-Tech is one of the ways to achieve financial excellence because it enables Financial Inclusion, Cybersecurity, Digital Transformation, and Artificial Intelligence which leads to a sustainable financing system. As Pakistan is the hub of SMEs and they contribute a major part to GDP the rise of Fin-Tech in terms of financial inclusion and cyber security will be a win-win situation for the country.
Moreover, the impact of FinTech is rapid in Pakistan and can be seen in controlling cyber crime after the implementation of the biometric system it is very difficult to fraud people with fake identities. The same goes for improved Fin-Tech services in the banking sector of Pakistan as everything is computerized now and the centralization of the software helped in the synchronization of big data. In the appreciation of Fin-Tech Innovation State Bank of Pakistan (SBP) aims to establish a Fin-Tech desk to give a rise to the stability of the Pakistan Financial System.
Furthermore, the term “Green” in reference to sustainability is not new to Pakistan and countless research has been done concerning the HR aspect of the firms however, the Green Fin-Tech still requires a dearth of research as the rise of Fin-Tech in Pakistan gives a boost to Green financing as well which has improved financial flow and improved green financial business including green bonds, green insurance, green micro-financing activities, e-banking etc.
In addition, the field of Fin-Tech still has a long way to go in Pakistan to achieve full independence and financial inclusion in the country but the continuous progress by the institutions in the field is one of the positive future outcomes for many sectors in Pakistan. A healthy financial system is the wealthiest financial system and Fin-Tech is one of the ways to achieve financial stability in Pakistan and one of the ways to help compete the local firms with international firms. The continuous development of Fin-Tech in Pakistan is a game changer for the economy and financial suitability of the country.
