Model communications and financial services partnerships set to grow

Interview with Miss Tara Uzra Dawood — CEO & Founder, 786 Investments Ltd

[box type=”shadow” align=”” class=”” width=””]Profile: Miss Tara Uzra Dawood is the CEO and Founder of 786 Investments Ltd., one of Pakistan’s oldest asset management companies. It is publicly listed on the Pakistan Stock Exchange. She also currently sits on the boards of Pakistan State Oil Company Limited where she chairs the Board Audit, HR and IT/Innovation committees, Pakistan Refinery Limited, Dawood Family Takaful Limited and previously was on the boards of Lahore Electric Supply Company and the Mutual Funds Association of Pakistan. She is certified in Corporate Governance by LUMS, Pakistan Institute of Corporate Governance and Harvard Business School.

She has spoken globally at numerous international mutual fund and banking conferences as an authority on shariah-compliant finance as well as finance for women. She is well known for her philanthropic work for women and children, in partnership with Facebook’s internet.org foundation and with the support of the World Bank, as well as distribution of emergency supplies during the SWAT earthquake and most recently, food rations during COVID-19/Sindh floods.[/box]

PAGE: Could you share your perspective of the technological innovations in the telecom sector on the banking services?

Tara Uzra Dawood: Unlike dinosaurs who didn’t survive the Ice Age, bankers can see the changes ahead. Retail banks have held their own despite a declining share of financial assets and successive threats from brokerage houses, national retailers, automobile companies, and even software makers. However, to date, none of the banks’ challengers have become an effective alternative. They still need to have an alchemy of customer value, convenience, and trust necessary to be an effective alternative, and to date that is not yet the case. Apple Bank? Maybe. But, not the market leader as yet. Banks, themselves, however are poised to be technology cutting edge. Customer convenience and ease of transactions, particularly during a pandemic, will ultimately win the market share.

PAGE: How has the digitalization helped the banking services?

Tara Uzra Dawood: Despite the answer to the previous question, digital banking is quickly becoming a preferred method for millions of users to complete many financial transactions. Not all, but many people are taking advantage of its conveniences. Initially, convergence of banking and telecommunications players, as well as internet service providers and web portals, is taking place. Market buzz says, “The conventional intra-industry consolidation that has preoccupied the telecom and banking sectors for the past few years will run its course, and as it does so, a typical communications and financial services partnerships, aimed at creating new forms of competition, will accelerate.”

PAGE: Is our banking sector keeping pace with the banking sector of the developed world?

Tara Uzra Dawood: Technology enables a business anywhere to “catch” up or even be at pace wherever you are in the world. Sometimes, the third world can even be more advanced and with law and order situations encouraging clients to use more technology, banks have to rise to these customer needs. Ironically, many of the apps and technology being used in banking are developed in the third world.

PAGE: Kindly compare the banking services of the past with the services being offered in 2021?

Tara Uzra Dawood: The pandemic has expedited the demand and led to a great appreciation for digital banking. Although there will be a desire for more physical or face-to-face meetings once the pandemic lets up, there will always be the convenience and option of digital banking. According to the KeyBank 2020 Financial Resiliency Survey, “85% of Users say they will use digital tools to complete some or all financial transactions after the pandemic. Extensive adoption of self-service digital banking is evident, and consumers appear to enjoy self-service banking. The trend of online banking and the acceleration in some sectors of moving to a cashless society would appear to create less need for physical bank branches. In 2019, there were 5,000 fewer commercial bank branches open than in 2010. In 2021, several institutions have made recent announcements regarding branch closures, including KeyBank, PNC Bank, U.S. Bank and Wells Fargo. Consumer needs are changing, and the banking industry is figuring out how to serve those needs.”