FINTECH'S ROLE IN PROMOTING FINANCIAL INCLUSION IN PAKISTAN

Abstract

This paper delves into the potential of financial technology (fintech) in promoting financial
inclusion in Pakistan. Fintech initiatives such as mobile payments, digital banking, microfinance, and financial
education have been explored as tools to improve financial services accessibility for both the unbanked
population in rural areas and small business owners. Challenges such as low literacy rates, limited technology
and infrastructure accessibility and regulatory barriers exist as obstacles to the adoption of fintech in Pakistan.
Despite these challenges, the authors argue that fintech can play a critical role in improving the financial
situation in Pakistan. Mobile payments can serve to reduce the cost of financial transactions while providing
a safe and secure method of payment. Digital banking can provide financial services in remote areas that may
not have access to traditional banking. Microfinance has great potential to provide financial services to
marginalized communities, and financial education can improve financial behavior. The authors, however,
note that investments need to be made towards digital infrastructure, financial literacy promotion, and
regulatory frameworks that support innovation and risk management to support the growth of fintech in
Pakistan.