The Basel Committee on Banking Supervision monitors banking rules for the major banks that operate in the world’s biggest financial sectors has said that it is not worried about Fintech companies eating into the money pie just yet. They were reluctant to adapt their rules to accommodate disruptive technology claiming that the fact that banks would become irrelevant due to the proliferation of fintech, was just ‘far-fetched’.
This has become a common thread around the world; institutions and even entire countries resisting the force of digital currencies and cashless transactions. In Pakistan there was a call to arrest illegal bitcoin traders by the FBR last year yet the interest around fintech has prevailed. There is a shop around every corner in any city or town that has the facility of ‘easypaisa’, or ‘Jazzcash’ or ‘UPaisa’, while other services like ‘Paymax’ are catching on.
The government has even announced that it will grant licences to third party vendors for interoperability between different fintech services and banks. The State Bank also hopes to get 50% of the adult population into the legal financial system by 2020 leveraging the power and reach of fintech.
Pakistan is in a unique position: by riding a trend and adopting it widely before many other nations in the world, it has opened up a lot of opportunities for its populace. Somehow the fact that PayPal steered clear of Pakistan is not a problem anymore. There are so many services that can replace it.