Recently the Prime Minister of Pakistan launched the 'Digital Pakistan' program with the vision to accelerate the journey of a developed and interconnected Pakistan in a Clean, Green, Paperless, transparent and efficient manner. On a global level, the journey of digitalization started with the 'Industrial Revolution (IR) 3.0' or the 'Digital Revolution' which marked the adoption of computers and automation systems in various business sectors. The next IR, i.e. Industry 4.0 took the ideology of digitalization to new heights with the 'combination of cyber: physical systems, the Internet of Things and the Internet of Systems in which computers are connected and communicate with one another to make decisions with little or no human involvement'. In addition to the numerous benefits offered by IR 4.0 to all the stakeholders, one of the greatest advantages of digitalization is the development of a Clean and Green economy.
Various industries have made great strides in the area of digitalization and the global banking industry is no exception. The banking sector is one of the largest consumers of resources such as paper and electricity through the extensive networks of branches and Automated Teller Machines (ATMs). The carbon footprints of this industry are not just limited to its daily banking operations. All over the world banks have been involved in financing polluting industries such as fossil fuels, textiles, mining, chemicals, etc and playing a significant role in global climate change and natural resource degeneration. However, Green Banking through the technologies of digital banking can play a significant role in minimizing the adverse environmental impacts of a bank's business operations.
Green Banking involves digitalizing bank operations through the concept of the 'Bank of Things'. This is derived from the concept of 'Internet of Things (IoT)', which involves the 'network of interrelated computing devices that connect and exchange data with one another via the Internet'. The Bank of Things (BoT) technology enables banks to be in continuous contact with their customers through cyberspace and offer limitless services, such as automated guidance on investment, spending, savings, etc. based on the customer's real: time financial data thereby eliminating the use of various resources that are required in providing banking services through a brick and mortar operations.
The world is moving towards cyberspace banking with banks operating in...