{"id":1268,"date":"2024-10-03T06:32:46","date_gmt":"2024-10-03T06:32:46","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=1268"},"modified":"2025-01-13T14:14:45","modified_gmt":"2025-01-13T14:14:45","slug":"innovation-in-banking-drives-economic-growth","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=1268","title":{"rendered":"Innovation in Banking drives Economic Growth: SBP Governor"},"content":{"rendered":"\r\n

KARACHI<\/strong> \u2013 Jameel Ahmad, Governor of the State Bank of Pakistan (SBP)<\/a>, emphasized the critical role of innovation in driving Pakistan’s economic growth, during his keynote address at the 13th Bank of the Future Forum (BoFF), organized by Systems Limited and Temenos.<\/p>\r\n\r\n\r\n\r\n

Addressing an audience of industry leaders, Ahmad underscored that rapid technological advancements have not only enabled banks to deliver innovative financial services but have also empowered regulators to enhance compliance through advanced data collection and processing capabilities. He pointed out that digital transformation in banking is essential to Pakistan\u2019s economic future.<\/p>\r\n\r\n\r\n\r\n

The governor’s speech covered several key themes, highlighting the SBP’s strong commitment to fostering innovation and digitalization in the banking sector. He noted that these efforts are paving the way for a dynamic and resilient financial ecosystem in Pakistan.<\/p>\r\n\r\n\r\n\r\n

Raast\u2019s Significant Growth in Digital Payments<\/strong><\/h2>\r\n\r\n\r\n\r\n

Jameel Ahmad shared the success of the SBP\u2019s digital payment system, Raast<\/em>, which was launched in 2021 as part of Pakistan’s broader adoption of the international ISO 20022 payment standard. In less than three years, Raast has processed approximately 850 million transactions, amounting to over Rs 19 trillion.<\/p>\r\n\r\n\r\n\r\n

Currently, Raast boasts 38 million unique IDs and processes an average of 2.5 million transactions daily.<\/p>\r\n\r\n\r\n\r\n

The SBP is also in the process of integrating Raast with the Arab Monetary Fund’s instant payment system, Buna<\/em>. This integration will simplify remittances for millions of Pakistanis living in Arab countries, making it easier and more convenient to send money back home.<\/p>\r\n\r\n\r\n\r\n

Digital Transformation Journey at SBP<\/strong><\/h2>\r\n\r\n\r\n\r\n

Jameel Ahmad highlighted that SBP\u2019s digital transformation journey began in 2002 with the implementation of the Temenos Banking System and an Enterprise Resource Planning (ERP) system for non-banking transactions. In 2008, SBP introduced the Real-Time Gross Settlement System (PRISM) for processing large-value, institutional payments.<\/p>\r\n\r\n\r\n\r\n

Most recently, SBP established a state-of-the-art Tier-3 data center, the first of its kind in Pakistan, further strengthening the nation’s digital banking infrastructure.<\/p>\r\n\r\n\r\n\r\n

The governor also pointed to SBP\u2019s 2008 regulations for branchless banking, which have been instrumental in expanding access to basic financial services across the country. As a result, the percentage of unique bank accounts among the adult population has increased from 16% in 2018 to 64% in 2024.<\/p>\r\n\r\n\r\n\r\n

Advancements in Digital Banking and Fintechs<\/strong><\/h2>\r\n\r\n\r\n\r\n

SBP’s commitment to innovation has extended to the establishment of Digital Banks in Pakistan. In 2022, the central bank introduced a framework to allow IT-enabled non-banking entities to enter the financial services industry. Five applicants have received in-principle approval and are expected to begin pilot operations soon.<\/p>\r\n\r\n\r\n\r\n

Ahmad also shared key statistics illustrating the growth of digital financial services in Pakistan. Today, there are 59 million branchless banking wallets, 19 million mobile banking users, 3.7 million e-money wallets, and 12 million internet banking users. Since 2020, digital retail transactions have increased by 30%, while the share of digital payments in total retail transactions has risen from 76% in FY23 to 84% in FY24.<\/p>\r\n\r\n\r\n\r\n

Mobile and internet banking transactions are growing at an annual rate of 70% and 30%, respectively, a trend driven by the tech-savvy younger population.<\/p>\r\n\r\n\r\n\r\n

Fintechs and IT Sector\u2019s Role in Driving Financial Transformation<\/strong><\/h2>\r\n\r\n\r\n\r\n

The SBP governor also praised fintechs for their contributions to identifying new market opportunities and delivering tech-enabled services. He called on Pakistan\u2019s IT sector to play a pivotal role in accelerating the transformation of the financial services industry.<\/p>\r\n\r\n\r\n\r\n

Systems Limited’s Commitment to the Future of Banking<\/strong><\/h2>\r\n\r\n\r\n\r\n

At the forum, Asif Peer, Group CEO and Managing Director of Systems Limited<\/a>, reiterated the company’s commitment to building the \u201cBanks of the Future.\u201d He emphasized that Systems Limited will continue to leverage cutting-edge technology to create innovative solutions for the financial sector.<\/p>\r\n\r\n\r\n\r\n

The 13th Bank of the Future Forum served as a platform for industry leaders to discuss the evolving role of technology in shaping the future of banking in Pakistan, with a focus on fostering innovation, driving growth, and enhancing financial inclusion.<\/p>\r\n","protected":false},"excerpt":{"rendered":"

KARACHI – Jameel Ahmad, Governor of the State Bank of Pakistan (SBP), emphasized the critical role of innovation in driving Pakistan’s economic growth, during his keynote address at the 13th Bank of the Future Forum (BoFF), organized by Systems Limited and Temenos. Addressing an audience of industry leaders, Ahmad underscored that rapid technological advancements have […]<\/p>\n","protected":false},"author":1,"featured_media":1269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[8],"tags":[38,402,775,197,14,59],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t