KARACHI: There is a need to focus on a policy framework for data protection and enforcement of the law by the government and stakeholders to avoid issues like unencrypted data, application vulnerabilities, mobile malware, and information loss, says Ammara Masood, CEO at NdcTech, in an interview with The News.
NdcTech helps banks and other financial institutions expedite their digital transformation The gist of this conversation was that with the use of digitalisation, banks can provide improved user experiences while also enhancing process efficiency, but cyber security is a significant area of risk for banks.
Here are some highlights from her interview.
Q: What are the current trends in the banking sector in Pakistan? How much of an impact has technology had on the development of these trends?
A: Pakistan has a population of over 220 million but there are only 66 million banking accounts. That is barely 30 percent of the banked population. The brick-and-mortar model will not be sufficient.
The central bank realised long ago the need to push banks to provide banking services through digital channels. Ironically, while Covid shut down many industries it worked in the favour of technology. The pandemic accelerated the demand for digital banking services as consumers and corporates were forced to do banking from their homes. And once they learned the convenience of digital banking, they preferred it over all conventional modes.
Digital banking is the new banking now and the role of technology is very significant for Pakistan’s banking industry. Technology helps create centralised payment gateways and automated clearing, which in turn increases the use of banking for the consumers.
With the different banking models coming into the market such as banking as a service, digital or challenger banks, electronic money institutions, fintechs adopting banking models, etc., all these new models require composing their banking services using a platform rather than just creating an app for their customers.
The comprehensive digital banking software like Temenos Infinity is a perfect fit for these different entities to evolve and offer the services to their customers that are relevant today.
Q: In Pakistan, digital banks, fintech firms, and e-commerce businesses have increased their presence. What do you think about the prospects for this growth?
A: The banking landscape in Pakistan is as vibrant as any other country in the west. The central bank has been forward-looking, enabling the landscape to evolve considerably in the last decade. The central bank also issued the digital bank licence framework and 25 plus companies are the contenders for this licence from which only five will be provided this licence.
This healthy competition was a good sign for the industry in the long-run with various banking models operating simultaneously, encouraging Pakistani banks and financial institutions to operate as per international standards and provide high-quality services to their customers.
Q: What challenges do banks in Pakistan and other countries have with regard to data storage, cybersecurity, cloud computing, etc?
A: Data compromise and security leaks are crucial issues. With the emergence of technology, the rise of new types of cyber security threats is imminent. The adoption of cloud systems and architecture is also relatively slow as compared to banks in other countries.
And this lack of information for security and the rise of privacy concerns associated with banking systems may hinder the growth of the industry.
Q: NdcTech is already working with most of the major banks in Pakistan? What are the plans for expansion into markets outside Pakistan?
A: The majority of banks in Pakistan, around 70 percent of them, are already NdcTech’s clients. NdcTech has worked with banks of all sizes and scales with a focus on delivering high-quality services to banks across the globe with a strong presence in the Middle East, Africa, and the Asia Pacific region.
Q: How will it impact not only NdcTech as a company but the IT sector in Pakistan? And what are the plans to scale up the operations through the presence of Systems Limited?
A: NdcTech’s objective was scaling up and that came with their merger with Systems Limited. Systems Limited is a premier IT company with a global network across major regions. This is one of the major integrations that has taken place in the IT industry and is a landmark for the IT industry in Pakistan. It will pave the way forward for new developments and breakthroughs in the IT industry and will increase IT exports for Pakistan by multiple folds by providing both entities with the required scale to accelerate growth.
From a growth perspective, this strategic acquisition will enable NdcTech to leverage the presence of Systems Limited across various new markets such as South Africa, Singapore, Australia, and Europe broadening their offerings portfolio by focusing on providing value-added end-to-end system integration services, managed services, and cloud services.