Pakistan’s financial sector is undergoing a rapid transformation driven by digital innovation, regulatory support, and evolving consumer behavior, according to senior industry leadership. Speaking at a panel discussion titled “How Digital Banks Can Thrive in the New Era?” held during Money20/20 Asia in Bangkok, Farhan Hassan highlighted the structural changes reshaping the country’s banking landscape.
Farhan Hassan, Chief Digital Officer at easypaisa, stated that Pakistan’s digital banking growth has not been driven by a single breakthrough but rather a combination of policy reforms, technological progress, and market-led innovation. He noted that financial inclusion in the country has improved significantly, rising from 47% in 2018 to 67% in 2025, supported by expanding access to digital financial services.
He further emphasized the growing role of digital platforms in everyday transactions. According to him, nearly 92% of retail payments in Q2 FY2025–26, amounting to 3.1 billion transactions, were conducted through digital channels such as mobile banking apps, internet banking, ATMs, POS systems, and e-commerce gateways.
Discussing the evolution of easypaisa as Pakistan’s first digital retail bank to begin commercial operations, he said the COVID-19 pandemic acted as a catalyst for adoption. However, he added that recent initiatives led by the government and the State Bank of Pakistan have further accelerated the transition toward a more cashless economy.
A key focus of the discussion was building trust in digital banking ecosystems. Farhan Hassan noted that while excessive friction can discourage users, weak security can undermine confidence. He stressed that long-term trust depends on seamless user experience supported by strong but largely invisible security systems, where reliability serves as the digital equivalent of a physical bank branch.
He also pointed out that digital banks are now competing not only with traditional financial institutions but also with Big Tech companies and embedded finance platforms. In response, easypaisa has shifted from a closed ecosystem to an open platform model, enabling partnerships with telecom operators, e-commerce platforms, and other digital service providers.
On the role of artificial intelligence, he highlighted that AI-driven credit scoring, fraud detection, and risk management systems are already improving efficiency and responsible lending. However, he noted that human oversight remains essential to ensure accuracy and contextual decision-making, particularly in emerging markets like Pakistan.
He acknowledged challenges such as limited digital literacy, socio-economic disparities, and language barriers, but expressed confidence that continued investment in infrastructure and localized innovation will help overcome these hurdles over time.
With more than 59 million registered users, easypaisa continues to align with Pakistan’s broader financial inclusion agenda, aiming to expand access to digital financial services for unbanked and underbanked populations.
