FINANCIAL technology (fintech) is any technology that delivers financial services with the help of software. Fintech has been around for quite some time, but over the last few years, fintech companies have revolutionised the way people interact with financial services. Some examples of fintech include mobile wallets and payment apps. Crowdfunding platforms, cryptocurrency and blockchain technologies are also some of the known examples.

For fintech to be successful, literacy, especially financial literacy, is extremely important. For instance, in countries like China, the use of cash has almost been replaced by a WhatsApp-like application, called WeChat. Customers can swipe their devices at the point of sale to make a purchase or pay and don’t have to carry cash with them.

In Pakistan, the urban population is highly conversant with fintech services, but the situation in rural areas is completely different. The major reason why fintech has not been really successful in rural areas is the low literacy rate and lack of training/education about these services.

Majority of the fintech applications do not offer local language interface and even when they provide the interface in the desired language, the applications are not really user-friendly. Resultantly, the adaptability rate of fintech services in rural areas is comparatively very low.

Since the government is working on reducing the undocumented economy and needs civilians’ database to improve tax collection, it should formulate policies along with the State Bank of Pakistan (SBP) and the education sector to improve fintech use in Pakistan by delivering trainings and awareness sessions, not only to compete with the modern world, but also for the sake of economic revival which relies on taxpayers’ money.

With proper guidance and training, the rural class would be more inclined towards fintech services and it would be a win-win situation for all.

Sadia Mumtaz Satti
Islamabad

Published in Dawn, May 26th, 2022