Financial sector needs AI boost to reach unbanked millions: FINCA chief
The financial sector can be enabled to provide more dynamic solutions that cater to the unfulfilled demands of Pakistanis by investing in and doing research on artificial intelligence-based solutions and big data-modeled embedded financial products, says Jahanzeb Khan, the chief executive officer of FINCA Microfinance Bank in an interview.
Q: What do you think of financial inclusion and its future in Pakistan?
A: Pakistan is a developing economy, the need for inclusivity must be prioritised for desired progress. Digital financial tools have enabled more than 60 million consumers via mobile banking wallets that were previously excluded from the formal economy. Formal access to financial services mitigates the exploitation of vulnerable segments.
However, plenty needs to be done to protect marginalised communities and enable them to contribute to the formal economy. The landscape of financial services in Pakistan continues to evolve beyond traditional branchless banking and mobile financial services, extending from EMI licenses to the recent award of digital bank licenses. However, challenges remain. Incremental investments are required primarily by the private sector in conjunction with regulatory authorities to further strengthen service offerings to target nearly 100 million unbanked individuals.
Artificial Intelligence (AI) has entered the digital ambit which will accelerate velocity of change required in financial services.
Disruptive AI-based solutions will be able to provide customised solutions and strategies for targeted segments with faster time-to-market. Research and investment in AIbased solutions, coupled with big data-modeled embedded financial products, can empower the financial sector to deliver more dynamic solutions that address the unmet needs of rural Pakistanis.
Q: How does FINCA Microfinance Bank work and what benefits the customers are getting from the bank?
A: At the core of FINCA's philosophy is the belief that access to financial services is a fundamental right, particularly for those underserved by conventional banking institutions. In contrast, FINCA is dedicated to empowering low-income individuals and communities by offering them innovative and impactful financial services.
Presently, FINCA is extending its services through a network across 115 cities in Pakistan, providing small loans and savings accounts to millions of rural clients who lack access to traditional banks. Women continue to experience a significant gender gap in financial inclusion.