The evolution of Pakistan’s financial landscape took center stage at the global Money20/20 Asia forum in Bangkok, where Farhan Hassan, Chief Digital Officer at easypaisa digital bank, provided a detailed look into the nation’s rapid transition toward a digital-first economy. Speaking during a panel titled How Digital Banks Can Thrive in the New Era, Hassan emphasized that the transformation in Pakistan is the result of a deliberate and sustained series of regulatory, technological, and market-driven interventions. He highlighted a remarkable surge in the national financial inclusion rate, which has climbed from 47 percent in 2018 to an impressive 67 percent by 2025. This growth reflects the success of policy reforms and digital innovations designed to bring the unbanked and underbanked populations into the formal financial fold.
A significant portion of this growth is attributed to the widespread adoption of digital payment channels. Hassan shared that in the second quarter of the 2025–26 fiscal year, a staggering 92 percent of retail payments in Pakistan were conducted through digital mediums. This accounted for approximately 3.1 billion transactions across mobile banking applications, internet banking, ATMs, point-of-sale machines, and e-commerce gateways. As the first digital retail bank to commence commercial operations earlier this year, easypaisa digital bank has played a central role in this shift. While the global pandemic served as an initial catalyst, recent initiatives spearheaded by the Prime Minister and the State Bank of Pakistan have provided the necessary operational and policy momentum to accelerate the move toward a truly cashless society.
Trust remains the most critical currency for digital banks operating without traditional physical branches. During the panel, Hassan explained that building and sustaining customer trust requires a delicate balance between user experience and security. He noted that while excessive friction can frustrate users and drive them away, weak safeguards can lead to catastrophic security breaches. For easypaisa digital bank, the solution lies in creating seamless user journeys supported by robust, often invisible security layers. In a digital environment, reliability is the equivalent of a physical bank branch; customers expect their payments and transfers to be consistently available and their support needs to be met instantly, regardless of the time or location.
The competitive landscape for digital banks is also shifting as they move beyond traditional banking rivals to compete with Big Tech and embedded finance players. Hassan revealed that easypaisa digital bank has transitioned from its original walled garden model to an open platform approach. This strategy enables strategic partnerships with e-commerce platforms, telecom operators, and various other stakeholders, creating a collaborative ecosystem rather than a closed loop. This openness allows the bank to integrate financial services into the daily digital lives of its 59 million registered users, making banking a secondary action to the primary tasks of shopping, communicating, or consuming media.
Artificial Intelligence is another frontier where Pakistani digital banks are making significant strides. Hassan discussed how AI-led credit scoring and decisioning are currently enabling institutions to scale their lending portfolios responsibly. These technologies allow for more accurate risk monitoring and fraud detection, which are essential for maintaining the health of a digital bank. While fully AI-driven financial advisory services are still in an evolutionary stage, Hassan stressed that human oversight remains vital to ensure accuracy and contextual decision-making. He acknowledged that while factors like socio-economic disparities and language fragmentation currently present hurdles to AI adoption, continued investment in localized innovation and digital literacy is expected to lower these barriers rapidly.
As a leading platform for global fintech innovation, Money20/20 Asia provided an ideal venue for Pakistan to showcase its digital achievements. Backed by the Telenor Group and Ant Group, easypaisa digital bank continues to align its operations with the State Bank of Pakistan’s vision for inclusive economic growth. The bank’s commitment to expanding its product suite for both existing and new users remains a priority as it navigates the complexities of a fast-evolving market. By leveraging global expertise and local insights, the institution is not only shaping the future of financial services in Pakistan but also establishing a blueprint for digital banking success in emerging economies worldwide.
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