Something exciting is going on with fintech in Pakistan. But what exactly is happening and what does it mean for that country's future?
The fintech in question refers more correctly refers to all technology that helps you conduct your banking needs generally without the assistance of a person. So it could be as simple as checking your balance or transferring your funds in your telephone app.
Record levels of funding are pouring into Pakistan-based startups, boosting hopes of a brighter economic outlook for the world’s fifth most populous country. Startups there took in $85M in venture funding so far this year—outpacing the $66M raised in all of 2020—and venture firms continue to build their war chests.
Consider this: If you are at all familiar with doing offshore business in Pakistan, you will appreciate that seventy-seven percent of the country is still physically unbanked and not financially included due to several reasons, including that bank branches cannot cover every part of the country; at 10 branches per 100,000 adults, Pakistan’s banking coverage is shallow as compared to the average of 16.38 in Asia. Clearly, a transformative moment was Covid-19 rapidly pushed countries like Pakistan into the digital twenty-first century in the financial sector.
Pakistan offers immense business opportunities in the payments sector for banks and other fintech entities, including startups and telcoms, to capitalize on the high mobile penetration in the country by offering financial services through mobile devices, apps, and web services.
Investment opportunities on the horizon in Pakistan? Yes, quite clearly!
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