In a compelling keynote address at the 13th Bank of the Future Forum, State Bank of Pakistan (SBP) Governor Mr. Jameel Ahmad highlighted the transformative role of digitalization in reshaping financial services and supporting economic growth in Pakistan. Organized by Systems Limited, this high-profile event gathered dignitaries, industry experts, and fintech leaders to discuss the future of banking in Pakistan and globally. Ahmad’s address, titled “The Future of Banking,” explored SBP’s commitment to fostering a digitally driven financial sector that aligns with international standards and enhances service accessibility for the public.
Governor Ahmad detailed SBP’s ongoing digital transformation efforts that have spanned over two decades, beginning in 2002 with the introduction of the Temenos Banking System, alongside the establishment of an ERP system and data warehouse for extensive data management needs. In 2008, SBP launched the Real-Time Gross Settlement System (RTGS), known as PRISM, to handle wholesale, large-value transactions. In recent years, the bank’s digital infrastructure expanded with the establishment of Pakistan’s first Tier-3 data center, further enabling SBP to support secure, large-scale transactions effectively.
SBP’s regulatory innovations have also accelerated financial inclusion, Ahmad explained, emphasizing the 2008 regulations for branchless banking, which allowed banking services to be accessed from retail stores and kiryana shops nationwide. This regulatory framework significantly broadened financial inclusion, contributing to the rise in unique bank account holders from 16% of adults in 2018 to 64% in 2024. Further advancing digital access, in 2022 SBP introduced a framework to foster digital banking, which provides IT-enabled, non-banking entities a pathway into the financial sector. Five applicants have already received in-principle approvals and are preparing to launch their pilot operations.
Another pillar of SBP’s digital initiatives is the implementation of the ISO-20022 payment standard, widely used for retail payments worldwide. Under this initiative, SBP launched Raast in 2021, a pioneering instant payment system aligned with ISO-20022 standards. Raast has seen widespread adoption across Pakistan, processing around 850 million transactions worth PKR 19 trillion within three years. With 38 million unique Raast IDs, the platform now handles an impressive 2.5 million transactions daily. To further facilitate remittances, particularly from the Pakistani diaspora in the Arab world, SBP is actively working on integrating Raast with the Arab Monetary Fund’s Buna payment system.
The digital landscape in Pakistan has expanded remarkably due to SBP’s initiatives. There are now approximately 59 million branchless banking wallets, 19 million mobile banking app users, 3.7 million e-money wallets, and 12 million internet banking users across the country. With digital transactions growing at a 30% annual rate since 2020, the share of digital payments in total retail payments by volume increased from 76% in FY23 to 84% in FY24. Mobile and internet banking transactions alone are growing at an annual rate of 70% and 30%, respectively, driven by the young, tech-savvy population.
Governor Ahmad applauded Pakistan’s fintech sector for its rapid growth, noting the sector’s proactive approach in developing market-specific solutions and driving financial inclusivity through tech-enabled services. He underscored the importance of continued collaboration between the financial and technology sectors, encouraging IT stakeholders to play an active role in expanding digital banking and further accelerating the shift toward a cashless economy.
Through sustained efforts in digitalization, regulatory enhancements, and active engagement with fintech innovators, the SBP aims to build a dynamic, resilient, and accessible banking sector in Pakistan. Ahmad emphasized that these initiatives not only enhance compliance capabilities but also contribute significantly to Pakistan’s economic development, setting the stage for a future of secure, efficient, and inclusive financial services.