Digital transformation is no longer an option but a necessity for the financial sector, according to State Bank of Pakistan (SBP) Deputy Governor Saleemullah. Speaking at the 16th SaarcFinance seminar, he underscored the urgent need for financial institutions to invest in advanced analytics, artificial intelligence (AI), and automation, while simultaneously developing regulatory frameworks that promote innovation without compromising stability.
The seminar, titled “Challenges and Opportunities in the Capacity Building of Central Banks and the Financial Industry: Lessons for Saarc Countries,” was hosted by the SBP at the National Institute of Banking and Finance (Nibaf) in Islamabad. The event gathered policymakers, financial experts, and delegates from South Asian Association for Regional Cooperation (Saarc) countries to discuss pressing challenges shaping the future of central banking and financial systems.
During his address, Saleemullah highlighted how technological advancements, geo-economic shifts, and climate change are reshaping the global financial landscape. He pointed out the growing importance of AI, machine learning, and blockchain in making financial services more efficient, inclusive, and affordable.
The deputy governor outlined three key challenges central banks and financial institutions face in the digital age. First, the rapid adoption of AI, Big Data, and blockchain requires financial institutions to reskill and upskill their workforce to keep up with evolving technological demands. Second, the digital divide remains a significant barrier, particularly in developing regions like South Asia, where access to cutting-edge financial technologies is limited. Third, the rise of fintechs and digital financial services has increased concerns around cybersecurity, data privacy, and financial fraud, necessitating greater regional and global cooperation to combat these risks effectively.
Saleemullah also highlighted the role of SaarcFinance as a key platform for cross-border collaboration among South Asian central banks. He emphasized the need for joint training programs, knowledge-sharing initiatives, and the creation of regional centers of excellence to enhance digital financial resilience.
At the seminar’s conclusion, Nibaf CEO Riaz Nazarali Chunara reinforced the need for collective action, stating that embracing digital innovation, investing in human capital, and strengthening regional cooperation are essential steps toward building a more resilient and inclusive financial ecosystem in South Asia.
As digital technologies continue to transform the banking and financial services industry, experts agree that regulatory bodies, financial institutions, and fintech players must collaborate and innovate to ensure a secure, efficient, and forward-looking financial ecosystem. The SBP’s emphasis on digital transformation and capacity building reflects Pakistan’s commitment to staying at the forefront of financial technology and economic progress.
