The establishment of digital banks in Pakistan would pave the way for a significant digital revolution in the banking and financial sectors and other industries in the future. Rabia Azfar Nizami, an IT specialist, recently stated in a media roundup that the policy of digital banks indicates vital milestones in the digital transformation of financial services, which would give clients an end-to-end cutting-edge experience.
For example, she stated that digital banks in various European nations do not require paperwork or a visit to any office. Yet, they are capable of banking without the assistance of phone bankers.
Financial literacy and usage of digital channels are restricted in Pakistan for various reasons, including customers’ lack of faith in the digital banking system, according to Rabia, who has worked in the IT business for over two decades and is the Country Head at Jaffer Consulting.
In the first stage, the banking authority intends to launch five digital banks in Pakistan to improve banking sector penetration in a country with a small banked population.
According to her, cyberattacks in Pakistan have been increasing, and the threat will continue to rise until proper laws and lawmaking safeguard the system.
She stated that the IT staff of any firm should be accountable and alert to defend their organization’s systems, citing many causes for pervasive hacking activities in various commercial and public sector companies, notably banks.
It is worth noting that a few commercial banks in Pakistan have experienced security breaches and financial losses. A security compromise also occurred at the Ministry of Finance and the Federal Board of Revenue (FBR).
To avoid being hacked, an organization’s IT staff should strengthen its cybersecurity and conduct periodic testing. She recommends that businesses use an improved program version in conjunction with a virus detection system.
The State Bank of Pakistan (SBP) has enacted a stringent IT infrastructure and security policy. Banks, she added, incur fines for failing to comply with requirements.
She noted that as the threat of cyberattacks grows, the demand for cyber security expertise in Pakistan increases. However, many cybersecurity tools and systems are smart enough to be deployed on the system rather than creating new series.
However, a Pakistani-based personal financial management app, Hysab Kytab, has lately made inroads into a global platform. Temenos Exchange has expanded its reach to a broad banking audience of over 3,000 clients in 150 countries, addressing the banking requirements of 1.2 billion people globally.
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