ISLAMABAD: Financial technology (fintech) refers to the use of technology to deliver financial solutions. Fintech firms are combining financial services and digital technology to provide innovative solutions to individual consumers and businesses.
In today’s world, an increasing number of people prefer to carry out their transactions like applying for loans and making payments using mobile applications.
Talking about the increasing role of fintech firms in banking and financial sectors, Muhammad Zafran, the branch manager of JS Bank, told WealthPK that his bank was focusing on ADCs (alternate delivery channels) to rid people of the hassle of coming to the branches and encashing their cheques and paying their utility bills while standing in long queues.
He added that financial technology benefited both banks and customers. “Internet and technological advancements have made it possible for banks to convert more and more traditional banking services into online channels.”
Muhammad Zafran said virtual banking integrated and streamlined the client banking experience using online and mobile platforms. “Customers who use virtual banking systems have continuous access to a single site where they can manage their bank accounts, pay their bills, apply for loans and create new accounts. These channels are also being used by banks to gather client data.”
He said that the convenience of customers is the priority of the JS Bank, which provides them with ease of making any transaction through mobile apps.
He informed WealthPK that now the State Bank of Pakistan had made it even easier for customers by introducing the RAAST payment system. “With RAAST, you can make payment to anyone at any time, whether or not the recipient has an account.”
He continued that online payment systems helped reduce load on bank branches. “Instead of dealing with fees or bill payments, we can now spare more time and focus on our worthy clients, who come to the bank for cross selling or making deposits. In this way, we get better results for the institution.”
Muhammad Zafran said the use of such technologies enhanced customer experience by decreasing manual labour, saving time and minimising mistakes. “Customers feel more connected and informed when they utilise fintech. Fintech is being used more and more by banks and other financial organisations to give better customer service and quickly expand branchless banking,” he explained.
He said banks were increasingly raising their knowledge and competence in technology because they viewed fintech as the future.
According to WealthPK, to take fully advantage of fintech, Pakistan must have a well-established fintech ecosystem.
It is heartening that the State Bank of Pakistan has adopted policies aimed at speeding up financial inclusion.
