Digital transformation must for institutions,says deputy SBP chief

KARACHI: The deputy governor of the State Bank of Pakistan has identified three significant challenges for central banks and financial institutions: the rapid adoption of artificial intelligence (AI), the global digital divide, and the increasing influence of fintech and financial interconnectedness.

“The accelerating adoption of AI, big data analytics, and blockchain necessitating an urgent reskilling of central bank workforce to keep pace with innovation”, said Deputy Governor SBP Saleemullah at the 16th SAARCFINANCE seminar held in Islamabad.

The event brought together distinguished experts, policymakers, and delegates from Saarc member countries to discuss critical issues shaping the future of central banking and financial systems.

The global digital divide poses significant risks to the adoption of digital technologies in developing regions like South Asia, Saleemullah said.The rise of fintech and financial interconnectedness has intensified challenges related to cybersecurity, data privacy and financial fraud, demanding greater regional and global collaboration, he added.

In his keynote address, Saleemullah emphasised the transformative impact of technological advancements, geo-economic shifts, and climate change on central banking. He highlighted the growing role of Artificial Intelligence (AI), Machine Learning, and blockchain in enhancing the efficiency, inclusivity, and affordability of financial services.

In his concluding remarks, the deputy governor stressed that digital transformation is no longer optional but imperative for financial institutions. He called for investments in advanced analytics, AI, and automation, alongside the development of regulatory frameworks that balance innovation with stability. He also highlighted the unique role of SAARCFINANCE as a platform for cross-border collaboration, advocating for joint training programmes, knowledge exchange, and the establishment of regional centres of excellence.