Scope of Fintech or Financial Technology in Pakistan (Urdu & English Review)
Let us talk about the scope of Fintech financial technology in Pakistan. In Pakistan, now the framework has been setting up so that roots of Fintech can be embossed. There are many opportunities which exist in this concept. We can promote this eco system a lot if we are going to fill these gaps. Note that FinTech is a short term abbreviation for Financial Technology. In this concept, the technology is being used so that financial services can be provided to the user. No doubt that FinTech have so far experienced remarkable amount of growth in the few years at the global level.
Challenges Faced by Fintech Financial Technology Industry in Pakistan
As our country is a cash-based economy and we do not have much awareness regarding this system and importance related to FinTech. Most of the national level organizations do not know that which of the FinTech are actually out there and which one they should be collaborating!
The concept of branchless banking and payment of bills through smartphones, you can give your thanks to financial technology system. FinTechs are facing many of the challenges in Pakistan. We have Karandaaz Pakistan which mainly promotes the financial inclusion by doing so and employing technology enabled kind of solutions.
Our banking sector represent the financial service figures upto 80% but just 15% of the financial services are served to the customers by using financial technology system.
Pakistan is one of the top ten markets when it comes to remittances but they can only and just be collected from the bank branches. Our microfinance banks lack a huge amount of extensive and detailed distribution system.
The FinTech industry in our country lacks larger range of organisation’s support as well as unfavorable type of regulatory environment. There is an unreceptive attitudes which is shown by the large players and more of the unfavorable regulations are rising with respect to this system.
Opportunities And Scope of Fintech Industry
We have 5th largest young population at a worldwide level and in our country, there is a dynamic and increase usage of internet and also smart phones, so there is a great chance that this Fintech industry will grow at an exponential and great rate in Pakistan.
It is this Pakistani market which shows this great amount of potential that we can easily adapt to these new and latest financial technologies. Our mobile penetration is about 69% and now our country Pakistan is becoming an economy which will sooner totally rely on this mobile phone technology.
By the time of 2020, this smart phone adoption will be rising from the time of 16.6% to 51%. With this system, insurance companies can easily reach to the customers by making their online channels.
For this FinTech industry, it has a huge potential in it to make a promising growth marking point in Pakistan. We have to create FinTech awareness and should introduce more programs and these collaboration platforms for this system. The introduction of branch-less banking will give more impetus and push to this industry.
Scope of Fintech (Financial Technology) in Pakistan