ISLAMABAD, May 4: Pakistan’s digital banking transformation is being driven by a combination of regulatory support, technological progress, and market-led initiatives, according to easypaisa Chief Digital Officer Farhan Hassan, who spoke at the Money20/20 Asia conference in Bangkok.
Hassan said financial inclusion in Pakistan has risen from 47% in 2018 to 67% in 2025, reflecting the impact of digital innovation and policy reforms in expanding access to financial services. He noted that the shift has not been driven by a single event but by sustained efforts across multiple fronts.
Growth in digital transactions and adoption
Hassan highlighted that digital channels now dominate retail payments in Pakistan. In the second quarter of FY2025–26, around 92% of retail transactions—equivalent to 3.1 billion payments—were conducted through digital platforms, including mobile apps, internet banking, ATMs, point-of-sale systems, and e-commerce gateways.
He added that the COVID-19 pandemic played a key role in accelerating adoption, while recent initiatives by the government and the State Bank of Pakistan have further supported the transition toward a more cashless economy.
Building trust in digital banking
Speaking on customer trust, Hassan said digital banks must balance ease of use with strong security measures. Excessive friction in digital services can discourage users, while weak safeguards can increase risks.
He noted that in the absence of physical branches, reliability and consistent service delivery are essential for maintaining user confidence in digital platforms.
Competition and platform expansion
Hassan said digital banks are increasingly competing not only with traditional financial institutions but also with technology companies and embedded finance providers.
He explained that easypaisa has shifted from a closed system to a more open platform, enabling partnerships with telecom operators, e-commerce platforms, and other stakeholders to expand its service ecosystem.
Role of AI and future challenges
Discussing emerging technologies, Hassan said artificial intelligence is already being used for credit scoring, lending decisions, fraud detection, and risk monitoring. However, he noted that fully automated financial advisory services still require human oversight to ensure accuracy and trust.
He also pointed to challenges such as digital literacy gaps, socio-economic disparities, and language barriers, which continue to affect the pace of adoption. These issues, he said, are expected to improve with ongoing investment in infrastructure and education.
Industry context and outlook
Money20/20 Asia is a global fintech platform that brings together banks, regulators, technology firms, and investors to discuss the future of financial services.
With over 59 million registered users, easypaisa digital bank said it remains aligned with the State Bank of Pakistan’s goal of promoting financial inclusion and expanding access to digital financial services for underserved populations.
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