– Codebase Technologies is working around the world to implement best practices and standards
– Roshan Digital offers coming fintechs an opportunity to implement their solutions in better ways
– Country’s emerging fintechs aiming high to make mark in global financial landscape
Interview with Mr Raheel Iqbal – Managing Partner, Codebase Technologies
The Pakistani banking and financial services markets are poised for a technology transformation, with banks embarking on innovation projects and emerging fintechs aiming at making their mark on the financial landscape. Market stressors like the COVID-19 pandemic have driven financial entities into development mode, while national initiatives like Roshan Digital seek to imbue Pakistan with foreign investment. These factors coincide to drastically reshape what financial services and banking means to legacy players and customers alike.
Raheel Iqbal, Managing Partner at Codebase Technologies, discusses the Pakistani digital banking industry, how the global pandemic has changed the landscape, and how fintechs should approach Pakistan as market entrants. Codebase Technologies recently launched Digibanc™ Roshan Digital Solution, a secure and unified platform that allows banks to manage seamless, consistent and engaging customer journeys across customer touchpoints.
PAGE: Could you give us your perspective on the Pakistani digital banking industry?
RAHEEL IQBAL: I think that there’s a lot of work to be done. Pakistan has certainly kept up with the international financial space in terms of understanding what can be done at a macro level. While there is a lot of opportunity in the market, and many fintechs entering the space with good intentions, the execution side of things leaves much to be desired. Banks and financial institutions in Pakistan need highly scalable, intelligent system architectures that serve to reduce costs and enhance the customer experience no matter where the customer is.
PAGE: What are the opportunities in Pakistan when it comes to digital banking?
RAHEEL IQBAL: One of the biggest indicators of opportunity lies in the degree of smartphone penetration within the country. Over half of the country’s are considered youth, and the other half are also highly connected, with at least one smartphone per person. Existing systems like Easypaisa and digital payments aren’t new, and are widely adopted as well. The opportunity lies in how this widely available channel is used, and how that channel can then feed back into informing banks and financial institutions with real-time, accurate insights. Once these insights are applied to a grander digitization approach, banks and institutions are able to enhance how customers transact on a connected payments ecosystem. When more trivial conveniences are digitized, the digital banking momentum builds, paving the way for innovations like instant credit financing or flexibly deployable microfinancing platforms. As the momentum grows, and banks and FI’s see the impact, the technologies that exist can be implemented, and the ones that don’t can be built specifically for the market.
PAGE: How has the digital landscape changed in the wake of the pandemic?
RAHEEL IQBAL: I’m cautious to say that it’s made the digital landscape better. There are many aspects to pre-COVID life that were disrupted because of the pandemic – banking and the financial sector were not excluded by any means. Significant market disruptions can be turned into opportunities because the need for alternative methodologies drives societal shifts. As governments and regulatory authorities adjust policies, they can emphasize highly impactful projects. Initiatives like Roshan Digital provide emerging fintechs in Pakistan an opportunity to implement their solutions, which can be used to bring new experiences and better regulatory compliance.
PAGE: You recently launched the Digibanc™ Roshan Digital solution in Pakistan. What can you tell us about that?
RAHEEL IQBAL: Digibanc™ Roshan Digital Solution is Pakistan’s only mobile-first Roshan Digital offering. We, at Codebase Technologies, are the only product company that have deployed an internationally renowned, digital-only platform that can integrate across all distribution channels, and that’s capable of opening new accounts in under 7 minutes. We implemented this solution to support SBP’s Roshan Digital initiative, enabling pan-GCC on boarding and offering customers a seamless, intuitive way to bank overseas. Our platform offers end-to-end straight-through processes, instant credit, instant cards, international KYC, and fully automated processing. We also wanted to ensure that customers could access digital account management services, so that the entirety of their Roshan Digital experience was seamless, intuitive, and reliable. We’ve gained our expertise through international projects, developing digital KYC, digital onboarding, and digital banking services across Europe, the Middle East, North Africa, and South Asia.
PAGE: What makes Digibanc™ Roshan Digital Account different from the others?
RAHEEL IQBAL: Other offerings on the market use internally-made, web-based platforms, which are then retrofitted to be accessible via mobile. This is problematic before the customer even begins the onboarding process – legacy technology development process flows are easily outpaced by agile development and an innovative mindset. Once the customer uses the product, they find a cumbersome solution that’s invasive and unengaging. The evolution of financial technologies has always been customer-centric, so a solution that prioritized customers’ preferred channel was crucial. Digibanc™ Roshan Digital is the only solution on the market that’s designed for mobile users, and it’s deployable in under 3 months. Seamlessness, or a smooth customer experience that’s responsive, unintrusive, and simplified, is foundational on our platform. Because we’re coming in having successfully deployed solutions around the globe, we’re able to pinpoint exactly where the potential operational and experiential deficiencies are, and tailor the solution for the aspirations of its users, our client bank, and SBP.
PAGE: Do you think Fintechs in Pakistan would be able to disrupt the sleeping banking sector?
RAHEEL IQBAL: As I said before, I think that there are almost limitless possibilities when trying to determine the grand potential of the digital banking space in Pakistan, but I also think that fintechs are highly capable of disrupting the banks. Technological innovation and deep understanding of your customers are synonymous when approaching titanic legacy industries with a disruption mindset. The main advantage that fintechs have over banks is the agility with which they can identify potential market opportunities, develop solutions to address them, and deploy them in a manner that reciprocates crucial information back to the organization. Banks around the world have already begun to acknowledge and adapt to the speed at which new technologies redefine finance. Banks in Pakistan aren’t far behind.
PAGE: How do you see the financial sector overall dealing with new innovations and introducing disruptive technologies?
RAHEEL IQBAL: I believe that they will only be receptive to innovation and disruptive technology if they fully understand the scope of how their organizations and customers can benefit from it. Legacy systems tend to be heavy, cumbersome, and resistant to integration with outside parties. Some of these systems were first implemented over 30 years ago. The evolution that’s taken place in that time has completely transformed the possibilities within the financial sector. Modern banks and financial institutions that want to outpace fintechs must first adopt the change mindset that will allow them to learn, collaborate, innovate, and grow.
PAGE: How can banks and financial institutions deliver new customer experiences without compromising on regulatory compliance and security?
RAHEEL IQBAL: Customer experience in recent years has focused more and more on application design and user interface, with mobile as the main target for innovation. The bridge between an intuitive interface and secure, compliant processes is built on trust – if users begin to distrust the application at some point on the customer journey, especially when providing sensitive financial information and personal data, then the journey ends immediately. Implementing technologies that can intelligently streamline KYC protocols, data capture and application processing take the customer experience into more secure territory, and maintain an engaged, loyal customer. The ability to efficiently interpret complex regulatory frameworks only grows as the digital banking landscape evolves, with more innovations and solutions that ensure regulatory compliance and security without sacrificing engaging user experiences.
We at Codebase Technologies work closely with regulators around the world to implement international best practices and standards. It’s a critical component within our product development process – we take regulatory compliance and digital security very seriously.
PAGE: What are your thoughts on the future of digital banking in Pakistan?
RAHEEL IQBAL: I’m very optimistic. SBP and the Pakistani government manage a regulatory environment that champions customer empowerment and impactful innovation. National and international banks that operate in Pakistan are well-positioned and highly capable of identifying potential points of innovation across value chains. The primary hurdle is enriching financial leadership with a change mindset that’s excited by the potential for transformation across the landscape, and motivated to align their business objectives with the value that technology can deliver. We at Codebase are very excited to help Pakistani financial industry leapfrog ahead and transform the digital landscape by bringing international experiences to the home market.