In a recent conversation with VCast Online, Zafar Masud, Chairman of the Pakistan Banks’ Association (PBA), emphasized the urgent need to dismantle data silos that currently hinder institutional efficiency and digital innovation across Pakistan’s financial landscape. He highlighted that the lack of interoperability between institutions is a significant barrier to creating a seamless and inclusive digital financial ecosystem.
Masud discussed the PBA’s ongoing efforts to lead the development of a national-level financial data exchange platform, which he described as a transformative move toward enabling better collaboration and innovation among all ecosystem players. According to him, the financial data exchange will be one of the pioneering initiatives of its kind in the country and is aimed at fundamentally reshaping how financial institutions, regulators, and fintech players share and utilize data.
At the core of this initiative is the vision to establish a framework where data can move securely and efficiently between stakeholders in the financial system. Masud underscored that this exchange is not merely a technical tool but a structural necessity for fostering a data-driven economy. By integrating data flows across various segments, from banks to fintech companies to regulatory bodies, the financial data exchange intends to eliminate redundancies and enable real-time, informed decision-making.
The initiative will also serve as a foundation for building trust-based digital services by giving institutions access to accurate, verified, and permissioned data. In Masud’s view, the data exchange will support use cases such as digital lending, onboarding, KYC (Know Your Customer), and credit scoring, which are key to improving access to finance, especially for the underserved and unbanked segments.
The PBA Chairman stressed that such digital infrastructure is critical for the evolution of a modern financial ecosystem. He added that Pakistan’s digital journey cannot progress in silos and must rely on connected systems that allow all institutions to grow in parallel, without duplicating efforts. According to Masud, collaboration between banks, fintechs, regulators, and data providers is essential to unlocking the full potential of the digital economy.
This vision aligns with global trends where open banking and interoperable financial systems are helping to reduce friction, drive innovation, and enhance customer experience. Masud pointed out that Pakistan has a unique opportunity to leapfrog traditional development hurdles by adopting collaborative digital solutions tailored to local challenges.
He also acknowledged the importance of policy support and regulatory clarity for the success of such initiatives. In this context, he emphasized ongoing dialogue between the PBA and the State Bank of Pakistan to ensure the new infrastructure complies with data protection standards while facilitating innovation.
As Pakistan continues to digitize its financial infrastructure, the launch of a financial data exchange under the PBA’s leadership marks a critical step forward. It signals a commitment to building an inclusive, future-ready financial system that can serve the needs of both individuals and institutions through better connectivity, transparency, and digital trust.