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To remain competitive, banks globally are focusing on mobile-first; end-to-end friction-less journeys and hyper-personalized experiences, through an eco-system of third parties, leveraging customer data to offer smart propositions tailored around lifestyle needs. Ambitions to super-apps is particularly trending in Asia, where certain banks intend to plan transitioning from a financial app into an every-day use super-app. Only when well-strategized, these banks may gain from higher rates of customer acquisition, satisfaction, retention and brand loyalty. Global institutions are also increasingly adopting the growing trend of invisible banking. Examples of embedded finance continue to grow, from no click payments on ride hailing apps to point-of-sales loans from BNPL providers built into mobile shopping apps

Meanwhile in Pakistan, industry stakeholders may be operating at varying levels of maturity, warranting a view on state of readiness and consequent digital transformation journeys that enable harnessing the true potential of digital. Depending on their relative positioning, banks may pursue following initiatives:

Design data-driven digital banking and payments strategies
Revisit digital banking and payments strategies
Diversify solution suite, move into adjacent financial products
Introduce app features and value-added services
Actively pursue digital lending propositions
Provide one window solutions addressing e2e financial needs of MSMEs
Focus on increasing app user base
Effectively integrate into the e-commerce space
Become the central contact for daily banking, building the B2B ecosystem –

Combining the words ‘financial’ and ‘technology’, fintech is technology-enabled financial innovation, which is changing the way financial institutions provide – and consumers and businesses use – financial services.
Although ‘fintech’ is a relatively new term, innovation has always been important in the financial sector. The key difference now is the pace and impact of change.
We are actively exploring how developments in fintech might support our mission to promote the good of the people of Pakistan by maintaining monetary and financial stability.
To embrace the potential of fintech we are:

Understanding how Fintechs can benefit DFS access: To gauge Fintechs, the SBP aims to establish a Fintech Facilitation Desk, where all interested Fintechs will be invited to gauge the Central Bank and establish a mutual understanding of how DFS access can be extended.
Understanding how Fintechs can impact Soundness of the Pakistani Financial Systems: The SBP is in constant evaluation of new business models and their impact on the soundness and stability of the Pakistani Financial Ecosystem.
Applying Fintech to enhance our own Capabilities: The use of new technology is imperative to move forward in this digital age. The SBP is in constant evaluation of new technologies and how we as regulators can use them to enhance our vigilance, supervision, and, regulatory roles.