PakistanTech

Fintech in Pakistan: A Look into the Growing Sector

The term “fintech,” which is a portmanteau of the words “financial” and “technology,” refers to the technological advancements that are changing the way financial institutions serve their customers as well as how individuals and companies use the services they provide. The term “fintech” is a portmanteau of the words “financial” and “technology.”

 Although the term “fintech” may be relatively recent, the significance of novel concepts in the financial sector dates back far longer than that. The most distinguishing features of our contemporary environment are the speed with which things shift and the scope of those shifts.

In the modern technological world, using conventional procedures is no longer possible. The Status Bank of Pakistan is always evaluating modern technologies to decide how best to utilize them in the regulatory capacity to strengthen oversight, supervision, and vigilance.

Specifically, their goal is to identify how best to employ blockchain technology.

Fintech companies are primarily concerned with enhancing the overall experience of their end users.

Regrettably, most of Pakistan’s financial institutions do not provide

satisfactory customer service. Although the bulk of these companies has made improvements to the procedures on the front end of their operations, the back-end customer experience that they provide has not changed. Because of the laborious procedures behind the scenes, it may take the bank up to two months to approve an online application for a credit card, for example. Banks have shown significant interest in supporting the company, even though payments are the only portion of the backend that is completely automated.

On the other hand, user interfaces of fintech are developed to be as simple as possible. The excellent quality of both the user interface and the user experience is evidence of their concentration on the problem the user is having. Banks are passing on a major opportunity to grow their businesses by not seeing their customer data from a customer-centric viewpoint. Monetary transactions, financial lending, financial saving, and financial investment are the four fundamental pillars that support the industry of fintech. Even while the use of online lending is becoming more widespread, the customer experience is still quite difficult, particularly when it comes to the process of making payments.

In 2021, the environment for investing in financial technology companies was quite favorable. Recent months have seen a decrease in activity, but it is anticipated that forward movement will resume on this front within the next half year.

In 2017, fin-tech and other startup businesses in Pakistan raised a total of $400 million, which was more money than Pakistan had collected in the preceding decade. If we continue along this path, we will have around $200 million by the time this year is up and upwards of $400 million the next year. The addressable market in Pakistan is underpenetrated compared to other nations, which indicates an opportunity for expansion in terms of both the customer base and the potential revenue. It seemed inevitable that the advancement of financial technology would play a significant part in this scenario, and that’s exactly what has transpired.

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