In order to tap digital financial solutions in the country, the tech-savvy market players are mulling to constitute a FinTech Association of Pakistan (FAP). This will provide an effective platform for all stakeholders to collaborate on promoting FinTech best practices and its ecosystem in Pakistan.
There are 100 potential members working in the emerging field of FinTech. The FinTech service providers include banks, microfinance banks, non-banking financial companies, private companies, and start-ups.
These companies are involved in the design and delivery of financial services and products. Its application serves numerous business segments such as lending, investment management, money transfers, raising funds and payments.
Initially, Pakistan Microfinance Network has designed the structure of the association. Its elections will be held once the companies sign up for their memberships in the organization.
The broader aim of the association is to facilitate collaboration between stakeholders in the FinTech ecosystem to enhance its scale, improve the quality of services and achieve sustainability to promote the future of Pakistan’s fintech industry.
The association will pursue its mission through the following objectives:
- Connect: To be a knowledge hub for the FinTech industry in Pakistan to channel and disseminate effective and relevant information among stakeholders.
- Catalyze: To provide a platform for incubation of ideas and innovation to accelerate the development of fintech companies.
- Create: To promote an enabling environment for FinTech organizations that helps successful integration and acceleration of Pakistan’s fintech ecosystem.
Pakistan has witnessed a dramatic increase in mobile broadband penetration over the past five years which stands at 30%.
According to an estimate, the digital finance potential of Pakistan stands at about $36 billion by 2025, providing a 7% boost to the GDP, creating 4 million new jobs and resulting in $263 billion of new deposits.
The association will have a flat structure, designed to allow the organization to be flexible and evolve with the needs of its members. The organizational structure will be lean and housed at Pakistan Microfinance Network, which will be used to minimize operational costs and gather experience of an established national-level association.
All members from Membership Type 1 and Type 2 i.e. affiliates will constitute the General Body. In addition, individuals and private companies interested in financial inclusion and fin-tech can also join the General Body.
Five independent members from the global fin-tech community will work as advisors including 6 patrons, one each from The State Bank of Pakistan, Pakistan Telecommunications Authority, Federal Board of Revenue, Securities and Exchange Commission of Pakistan, NADRA along with the Head of Digital Pakistan Initiative.