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In this Showcase, Raheel Iqbal, our Managing Partner, speaks with Pakistan & Gulf Economist about Digibanc™ Roshan Digital, and the digital banking outlook in Pakistan.
The Pakistani banking and financial services markets are poised for a technology transformation, with banks embarking on innovation projects and emerging Fintechs aiming at making their mark on the financial landscape.
Market stressors like the COVID-19 pandemic have driven financial entities into development mode, while national initiatives like Roshan Digital seek to imbue Pakistan with foreign investment. These factors coincide to drastically reshape what financial services and banking means to legacy players and customers alike
Codebase Technologies recently launched Digibanc™ Roshan Digital Solution, a secure and unified platform that allows banks to manage seamless, consistent and engaging customer journeys across customer touchpoints.
1. Could you give us your perspective on the Pakistani digital banking industry?
I think there’s a lot of work to be done. Pakistan has certainly kept up with the international financial space in terms of understanding what can be done at macro level. While there is a lot of opportunity in the market, and many fintechs entering the space with good intentions, the execution side of things leaves much to be desired. Banks and financial institutions in Pakistan need highly scalable, intelligent system architectures that serve to reduce costs and enhance the customer experience no matter where the customer is.
2. What are the opportunities in Pakistan when it comes to digital banking?
The degree of smartphone penetration within the country indicates significant opportunity. More than half the population comprises youth, while the other half remains highly connected with at least one smartphone per person.
Easypaisa and digital payments are widely adopted existing systems. The opportunity lies in utilizing this accessible channel to inform banks and financial institutions with real-time, accurate insights. Applying these insights to a broader digitization approach enables banks and institutions to enhance customer transactions within a connected payments ecosystem.
Digitizing trivial conveniences builds momentum for digital banking, paving the way for innovations like instant credit financing and flexible microfinancing platforms. As momentum grows and banks and financial institutions witness the impact, they can implement existing technologies and develop market-specific solutions.
3. How has the digital landscape changed in the wake of the pandemic?
I’m cautious to say that it’s made the digital landscape better. There are many aspects to pre-COVID life that were disrupted because of the pandemic – banking and the financial sector were not excluded by any means. Significant market disruptions can be turned into opportunities because the need for alternative methodologies drives societal shifts.
As governments and regulatory authorities adjust policies, they can emphasize highly impactful projects. Initiatives like Roshan Digital provide emerging fintechs in Pakistan an opportunity to implement their solutions, which can be used to bring new experiences and better regulatory compliance.
4. You recently launched the Digibanc™ Roshan Digital solution in Pakistan. What can you tell us about that?
Digibanc™ Roshan Digital Solution is Pakistan’s only mobile-first Roshan Digital offering. Codebase Technologies is the only product company that has deployed an internationally renowned, digital-only platform that can integrate across all distribution channels, and that’s capable of opening new accounts in under 7 minutes.
We implemented this solution to support SBP’s Roshan Digital initiative, enabling pan-GCC onboarding and offering customers a seamless, intuitive way to bank overseas. Our platform offers end-to-end straight-through processes, instant credit, instant cards, international KYC, and fully automated processing.
We also wanted to ensure that customers could access digital account management services, so that the entirety of their Roshan Digital experience was seamless, intuitive, and reliable. We’ve gained our expertise through international projects, developing digital KYC, digital onboarding, and digital banking services across Europe, the Middle East, North Africa, and South Asia.
5. What makes Digibanc™ Roshan Digital Account different from the others?
Other offerings on the market use internally-made, web-based platforms which are then retrofitted to be accessible via mobile. This is problematic before the customer even begins the onboarding process – legacy technology development process flows are easily outpaced by agile development and an innovative mindset. Once the customer uses the product, they find a cumbersome solution that’s invasive and unengaging.
The evolution of financial technologies has always been customer-centric, so a solution that prioritized customers’ preferred channel was crucial. Digibanc™ Roshan Digital is the only solution on the market that’s designed for mobile users, and it’s deployable in under 3 months.
Seamlessness, or a smooth customer experience that’s responsive, unintrusive, and simplified, is foundational on our platform. Because we’re coming in having successfully deployed solutions around the globe, we’re able to pinpoint exactly where the potential operational and experiential deficiencies are, and tailor the solution for the aspirations of its users, our client bank, and SBP.
6. Do you think Fintechs in Pakistan would be able to disrupt the sleeping banking sector?
As I said before, I think that there are almost limitless possibilities when trying to determine the grand potential of the digital banking space in Pakistan. But I also think that fintechs are highly capable of disrupting the banks.
Technological innovation and deep understanding of your customers are synonymous when approaching titanic legacy industries with a disruption mindset. The main advantage that fintechs have over banks is the agility with which they can identify potential market opportunities, develop solutions to address them, and deploy them in a manner that reciprocates crucial information back to the organization. Banks around the world have already begun to acknowledge and adapt to the speed at which new technologies redefine finance. They aren’t far behind.
7. How do you see the financial sector overall dealing with new innovations and introducing disruptive technologies?
I believe that they will only be receptive to innovation and disruptive technology if they fully understand the scope of how their organizations and customers can benefit from it. Legacy systems tend to be heavy, cumbersome, and resistant to integration with outside parties. Some of these systems were first implemented over 30 years ago.
The evolution that’s taken place in that time has completely transformed the possibilities within the financial sector. Modern banks and financial institutions that want to outpace fintechs must first adopt the change mindset that will allow them to learn, collaborate, innovate, and grow.
8. How can banks and financial institutions deliver new customer experiences without compromising on regulatory compliance and security?
In recent years, the focus of customer experience has shifted towards application design and user interface, primarily targeting mobile innovation. Trust serves as the foundation bridging an intuitive interface and secure, compliant processes. If users lose trust, especially when sharing sensitive financial and personal information, their journey abruptly ends.
Intelligent implementation of technologies that streamline KYC protocols, data capture, and application processing enhances customer experience by providing a secure environment. This fosters engaged and loyal customers. As the digital banking landscape evolves, the ability to efficiently navigate complex regulatory frameworks grows. Innovative solutions ensure regulatory compliance and security while maintaining engaging user experiences.
At Codebase Technologies, we collaborate closely with regulators worldwide to adopt international best practices and standards. Regulatory compliance and digital security are vital aspects of our product development process, reflecting our serious commitment.
9. What are your thoughts on the future of digital banking in Pakistan?
I’m very optimistic. The regulatory environment managed by SBP and the Pakistani government promotes customer empowerment and impactful innovation. Both national and international banks operating in Pakistan have the advantage of identifying potential innovation points along the value chains.
The main challenge lies in cultivating financial leadership that embraces change and is enthusiastic about the transformative potential across the industry. It is crucial for them to align their business objectives with the value that technology can offer. At Codebase, we are excited to contribute to the advancement of the Pakistani financial industry and bring international experiences to the domestic market, transforming the digital landscape.
Tagged:
- digital transformation, mena, roshan digital account
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