Citibank N.A., Pakistan (Citi) and the State Bank of Pakistan (SBP) hosted a session on digitisation, transformation and market disruptors and the evolution that is taking place in the banking industry on a global scale.
The event, held at the SBP, was chaired by Syed Irfan Ali, Executive Director, Banking Policy and Regulations Group (BPRG), SBP, and was led by Naveed Sultan, Citi's Global Head of Treasury and Trade Solutions.
The session delved into the evolving technologies in the financial market infrastructure, and how trends of globalization, urbanization and digitization are transforming the banking and financial landscape. Naveed highlighted major disruptors in the market, including fintechs and microfinance banks. As market players focus on shifting the physical into digital, the change in banking capabilities, investment in disruptive technologies, and transforming core infrastructure will quickly become integral to the survival of commercial banks.
World dynamics are changing. In 2012, the flow of goods, services and finance was $26 trillion; by 2025, it is projected to be $85 trillion. Urban population in 2014 accounted for 54% of the world's population - a number that will grow to 75% by 2050. E-Commerce sales reached almost USD 2 trillion in 2017. As businesses evolve, the manner in which business is done must evolve along with them.
"SBP is committed to building a modern and robust payment system in Pakistan, and fully supports digitization and the development of digital financial services in the industry," Syed Irfan Ali pointed out in his opening remarks.
He emphasized the role of non-bank intermediaries in the provision of financial access to the financially excluded population in the country. "There is huge potential in technologies like Artificial Intelligence (AI), distributed ledgers, cloud computing and Internet of Things (IoT), which can provide cost effective and efficient product and services to customers," he remarked.
Naveen Sultan elaborated on the same themes in his presentation.
"Secular trends of globalisation and digitisation are transforming economies and industries including financial services. Developing a strategic approach towards innovation and digitalisation is a critical driver of success for companies and banks to succeed in this new environment and stay relevant to its clients and other constituents. Citi prides itself on being the best for its clients driven by innovative products and solutions and exceptional client experience," commented Naveed.
"Citi very actively engages and collaborates with regulators, policy makers, market infrastructures, clients including FIs, tech companies?, start-ups including Fintech etc. to ensure that financial system remains responsive to the secular trends and changing environment and continues to provide impetus to economic growth and progress."
Nadeem Lodhi, CCO and Managing Director of Citi Pakistan, said, "In the past few years, it has become evident that the banking industry is on the precipice of transformation. Technological developments are being harnessed to drive competitive advantages across industries, and financial institutions must ensure that they are key participants in this sea of change in order to keep up with client expectations. Banks need to be innovative, drive advancements in their own systems, and invest in collaborative relationships with technological partners." The session was attended by seniors from local financial institutions and telecommunication companies.-PR