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The fintech landscape in Pakistan is growing faster than ever before.
Over the last decade, the Pakistani digital financial services sector has been in an accelerated upwards spiral. As high-bandwidth penetration(3G/4G) surges past 43%, and mobile penetration increases beyond a staggering 77%, it comes as no surprise that Pakistan has become a hotspot for cutting-edge fintech innovation.
With 64% of the population under 30 years old, Pakistani fintechs are playing a crucial role in the financial technology landscape. They have the advantage of leveraging technology to introduce a new era of digital financial services.
The years 2020 and 2021 were pivotal for Pakistan’s fintech sector. However, these fintechs have continued to face various challenges and opportunities. Financial inclusion stands at around 14%, making fintechs offering e-wallets and P2P gateways essential for driving financial inclusion. On the other hand, fintech players also encounter skepticism about digital financial services, leading to approximately 80% of e-commerce transactions in Pakistan relying on Cash-On-Delivery (COD)..
Yet, the nascent fintech ecosystem consistently attracts global VC funding from world-renowned firms and market leaders. CreditBook, a digital ledger fintech for SMEs closed an impressive $1.5 million seed round in2021. Digital payments provider SafePay has further raised a staggering 7-figure funding round from the SaaS payments enabler Stripe. SadaPay, Pakistan’s first neobank, quickly followed suit and successfully closed the country’s largest-ever funding round at $7.2 million.
Shifting Focus: The Customer
The customer plays a crucial role in the transformation of the Pakistani banking and financial services sector. Their demand for a superior digital experience has compelled banks and financial institutions to develop intuitive, engaging, and customer-centric channels. To accelerate fintech adoption in Pakistan, it is essential to leverage innovative, indigenous technologies. They need to collaborate with technology partners who have a proven track record in establishing pioneering fintech ecosystems in the market.
Codebase Technologies, a global provider of open API banking solutions, has played a pivotal role in shaping Pakistan’s financial technology sector. Through our award-winning Digibanc™ suite, we empower banks and FIs to develop highly flexible and scalable products for their customers.
As the technology leader for Dubai Islamic Bank’s (DIB) Roshan Digital Account initiative, Codebase Technologies utilized its extensive collection of more than 470 future-ready, compliant APIs. This strategic approach resulted in an impressive customer conversion rate exceeding 80%.
Within the MENA region, as a fintech technology partner for UAE-based ZinkPay, a global one-stop digital payments fintech, Codebase Technologies leveraged its award-winning Digibanc™ suite to provide ZinkPay with flexible, innovative digital propositions, and rapid go-to-market capabilities.
Evolving with Digibanc Platform
As the Pakistani fintech ecosystem eases into a sustainable stride, Codebase Technologies is on-track to play a similar catalytic role in accelerating growth within the fintech space. With the State Bank of Pakistan inaugurating premiere instant payment systems such as Raast, the landscape is ripe for a market leader such as Codebase Technologies to build strategic synergies with Pakistan fintechs, and accelerate the momentum that the fintech space is experiencing. The result is a banking and financial services landscape that shares zero similarity with what it once was, and more effectively serves customers while revolutionizing operations across the board.
Tagged:
- market insights, mena
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Muhammad Haider Khan
Management Associate @ Codebase Technologies| Fin-tech|Open-Banking| Strategic Consultancy|
