Consumer moving more toward adopting digital banking tools

Consumer tends to have direct connection with their bank inorder to avoid traffic at bank. Online

mobile banking has provided a medium to fulfil their need and primary partner for providing

advisory service, without putting them on risk on getting intact with virus. Customer wants to

keep track of their transcation to understand their finacnail standing and have a organsie way of

finance to prioirties their spending. This would change the role of Relation management as

employee would have all previous record and data driven insights to better understand the

indiviual needs of trageted customer. Forming a long term loyal relationship hence increae the

reveneure per person.

Pakistani digital financial service to cater covid-19

Many countries have gone through global crisis including Pakistan. The reason behind the direct

impact is because mainly people are employed under small and medium enterprises (SMEs)

unfortified employment, which are dependent upon the banking sector, hence making the instant

reaction to Covid-19 weaker. As a response to cater with the pandemic, banks in Pakistan are

moving toward the use of Digital Financial Services as a recommended mode for making cash

transitions. This helps to make the service available incase of lockdown and to maintain social

distancing.
Adoption of DFS in Pakistan

The research report by Karandaaz on “COVID 19 and its Impact on Pakistan’s Digital Financial

Services Landscape” has highlighted that 94 percent of respondent feel that DFS system in

Pakistan would be an opportunity for funds to be distribution and Zakat disbursement and the

usage will increase in upcoming months.

Digital Wallet

Similarly, 69 percent responded that mobile wallet adoption will increase to control the transfer

of virus and encourage contactless mode of payment. The below figure show percentage for use

of wallet payment in following purpose.

SME are opting for Allocation of government relief package.

While under the pandemic many SME’s are impacted and hence these distressed businesses are

moving toward the relief’s packages provided by commercial banks. this has increased the

investment and the provision of relief program by SBP.

Expansion of Banks and Technology adoption

There is sharp long-lasting shift towards consumer behavior in adopting digital payment due to

which expansion in banking sector has seen slower growth from 2014 to 2019, as one

contribution factor is because of technology adaptation and banks are moving toward increasing

their IT expenditure to facilitate the use of digital payment in Covid-19. The budget is as

following for following banks overall as, 50% for handling software-based activities, 30% for

handling hardware activities and lastly 20% for network change.

https://tellimer.com/article/pakistan-banks-covid-19-could-drive-a-shift-t

https://mettisglobal.news/covid-19-and-its-impact-on-pakistans-digital-financial-services-

landscape

https://www.geo.tv/latest/302328-digital-banking-opportunities-for-banks-post-covid-19