Digital banking revolution

The digital banking sector in Pakistan is witnessing exponential growth

Digital banking in Pakistan is growing exponentially, led by the introduction of the Roshan Digital Account which is being termed as a landmark initiative.

Roshan Digital Account seamlessly connects the Pakistani diaspora to the Pakistani financial system and economy, allowing overseas Pakistanis to open an account without visiting any bank branch and invest in the stock market or real estate sector as well as pay utility bills and school fees while living abroad. It also provides exclusive investment opportunities in Naya Pakistan certificates offering attractive returns in both conventional and Shariah-compliant forms, as well as the Pakistani stock market and real estate.

“It is a dynamic and essential push towards promoting the banking industry in Pakistan. This initiative can offer banks a larger customer base, lower operating cost, and higher competitive environment,” says Syed Asif Zaman, partner at Ahmad Alagbari Chartered Accountants.

The Roshan Digital Account has attracted close to $2 billion till the end of July 2021. So far, 199,747 overseas Pakistanis have opened their Roshan Digital Accounts.

The State Bank of Pakistan’s data showed that $1.278 billion has been invested in Naya Pakistan Certificates (NPCs) as of July 31, 2021, with $763 million in conventional NPCs and $515 million in Islamic NPCs.

“Covid-19 situation also accelerated the adoption of mobile and internet banking by consumers yielding additional returns for banks with the enhanced customer experience and lower costs. Growth in deposits has been fuelled by higher remittances, while business activity (cash-based) too was hindered due to Covid-19 resulting in an increase in banking deposits. The banking and financial institution profitability will be influenced by fintech companies helping financial institutions to adopt the customer-centred innovations that will help them provide a more tailored, value-added customer experience,” said Zaman. He said the pandemic presented an opportunity for expanding digital disruption initiatives for transforming the banking landscape in Pakistan.

— waheedabbas@khaleejtimes.com