Keeping up with the Fintech economy improves.

Byline: KHALIL AHMED

Digital banks increasing financial inclusion, offering innovative services

Interview with Mr. Saad Hassan - Assistant Vice President, National Bank of Pakistan

Profile:

Saad Hassan is a highly qualified and experienced banker, currently serving at the National Bank of Pakistan. With a strong background in Audit and Inspection, Regulatory Compliance, Employee Banking, Service Quality, and Training and Development, Saad has proven his expertise in managing various aspects of banking operations.

He holds an MBA from IBA Karachi and has also completed a Master in Economics and Masters in Islamic Banking and Finance, in addition to being an Associate of the Institute of Bankers, Pakistan (IBP). With his extensive knowledge and skills, Saad is committed to delivering exceptional results and contributing to the growth and success of the banking industry in Pakistan.

PAGE: Could you give your perspective on digital banks in Pakistan?

Saad Hassan: Recently, the State Bank of Pakistan issued licenses for digital banks, which are expected to bring transformative change to the banking industry. Digital banks will operate exclusively online, increasing financial inclusion and offering innovative financial services. Currently, there are 269 fintech companies in Pakistan, with the industry expected to reach $35 million by 2025 and create an additional 4 million jobs.

Five companies have obtained NOCs to become digital banks, one of which is Easypaisa, a current player in the market. The migration to electronic means is expected to increase GDP by 7%, generate 04 million jobs, and add $263 billion in new deposits. However, all banks must address cybersecurity concerns. The new digital banks have a large untapped market to potentially tap into, particularly among underserved people without bank accounts, especially women.

PAGE: What is your standpoint on the technological progress of the financial services industry in Pakistan?

Saad Hassan: The technological progress of the financial services industry in Pakistan has been significant since the last few years. Digital banking has become increasingly popular in Pakistan, with a growing number of banks offering online and mobile banking services. In 2022, the State Bank of Pakistan (SBP) reported that over 90% of banks in Pakistan offered mobile banking services, and over 60% offered Internet banking services. This has made it easier for customers to access their accounts and conduct...