Pakistan’s digital financial services ecosystem has been evolving steadily over the past decade, with branchless banking emerging as a key channel for expanding access to financial tools. Tughral Ali, EVP and Head of Branchless Banking at FINCA Microfinance Bank, highlighted that the sector has matured gradually rather than through sudden transformation. According to him, branchless banking has existed for nearly ten years, initially limited to a small number of microfinance institutions. Over time, increased participation from banks and fintech companies has accelerated adoption, especially as digital financial services gained traction among consumers. He emphasized that digitization within banks requires a stepwise approach due to heavy regulatory requirements and operational complexity. Rather than switching systems overnight, institutions must first identify future objectives, prioritize key areas for digitization, and ensure employees are prepared for change. He stressed that technology alone does not deliver results unless organizational culture evolves alongside it.
Reflecting on industry progress, Ali noted that the most visible advancement in Pakistan has been in digital payments and transfers. Peer to peer transfers and utility bill payments have become widely adopted use cases, particularly for individuals sending money to families in remote locations. However, he observed that innovation beyond these services has remained limited. He pointed out that the industry often develops solutions before fully understanding the problems faced by unbanked populations. Many individuals near the poverty line experience financial shocks such as illness, job loss, or accidents, which can push households into deeper vulnerability. He argued that designing meaningful digital financial products requires direct engagement with these communities. He also highlighted the importance of sociologists, behavioral economists, and anthropologists in shaping financial inclusion strategies, stating that behavioral factors significantly influence adoption of digital banking services. According to him, financial inclusion should not be measured by wallet registrations or transaction counts alone, but by improvements in socioeconomic conditions over time.
Ali also discussed FINCA’s collaboration with fintech company Finja, describing it as a combination of innovation and regulatory expertise. He explained that fintech partners bring agility and new ideas, while banks provide guidance on compliance and operational structure. This collaboration allows both sides to refine products and test concepts within regulatory boundaries. He further noted that financial inclusion involves providing access to credit, insurance, and savings products that enable families to manage risks and plan for future expenses such as education and healthcare. These tools can help households move from day to day financial survival to longer term planning. To expand outreach, FINCA has adopted multiple acquisition channels, including digital marketing in major cities and onboarding corporate clients for payroll and cash management solutions. These corporate partnerships help drive adoption among employees and create stable engagement. The bank also plans to utilize its branch network across more than 100 cities to onboard customers in smaller urban centers and surrounding communities.
Ali clarified that branchless banking complements physical branches rather than replacing them. Digital channels reduce pressure on branches by lowering footfall while simultaneously expanding customer reach. He noted that branchless banking added a significant number of customers within months of launch, demonstrating the scalability of digital platforms. He also acknowledged the supportive role of State Bank of Pakistan, stating that the regulator has encouraged innovation while maintaining consumer protection. FINCA regularly engages with SBP when testing new ideas, often running pilot initiatives before commercial rollout. This collaborative approach allows experimentation within regulatory frameworks while ensuring deposit safety. Ali indicated that continued fintech participation and regulatory cooperation are likely to drive further expansion of digital financial services across Pakistan.
Watch the complete video interview here.
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