The Governor of the State Bank of Pakistan (SBP), Jameel Ahmed, recently announced that the country’s first digital bank is expected to start operations in the next few months. This move is part of a larger initiative by the SBP, which has already given in-principle approval to five digital banks, all of which could be functional by mid-next year.
Benefits of Digital Banking:
Digital banking will allow people to handle their financial transactions online without needing to visit physical branches. This could be a game-changer for Pakistan, especially when considering how many people in the country are still unbanked. Imagine having access to basic banking services like savings accounts, loans, and money transfers right from your phone—something that can be particularly beneficial for those living in remote areas where traditional banking services aren’t available.
But with every new opportunity comes a set of challenges. While digital banking is supposed to make life easier by reducing operational costs and offering lower fees, the transition isn’t going to be a walk in the park. Cybersecurity is a major concern. With financial transactions going online, there’s a higher risk of cyberattacks and data breaches, which can seriously harm people’s trust in the system.
There’s also the issue of the digital divide. While urban areas may have relatively better internet access, many rural areas are still struggling to get connected. And then there’s the language barrier. Most banking services in Pakistan are still in English, which can be a huge obstacle for many people, even those in cities, who aren’t comfortable with the language.
, Jameel Ahmed, recently announced that the country’s first digital bank is expected to start operations in the next few months. This move is part of a larger initiative by the SBP, which has already given in-principle approval to five digital banks, all of which could be functional by mid-next year.){kind=link}