Karachi: State Bank of Pakistan (SBP) Governor Dr Reza Baqir on Wednesday (November 10) said that the Islamic banking system needs to update and digitise its services and products to increase the outreach and ensure inclusive banking sector, news sources reported. According to Baqir, the Islamic banking system has a vast untapped potential in all Islamic countries where a large population lacks bank accounts.
Speaking at the 15th Islamic Finance Services Board (IFSB) meeting in Saudi Arabia, titled ‘Digital Transformation of Islamic Financial Services: Opportunities, Challenges, and Policy Implications,’ Baqir said that Islamic banking has not grown to the level that it should have. Furthermore, he stated that by establishing specialised Sharia and regulatory standards organisations relating to fintech and digital banking, Islamic banking will be able to reach a broader segment of society. He also discussed SBP banking-related initiatives, including the Payment Systems Strategy (PSS), a digital onboarding framework for customers and merchants.
Similarly, products such as Roshan Digital Accounts (RDA) are being developed to provide new banking options to millions of non-resident Pakistanis (NRPs). Furthermore, he stated that international standards bodies such as the Accounting and Auditing Organization for Islamic Financial Institutions and the IFSB are needed. This would be critical for the rapid expansion of the global Islamic financial industry, he opined.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
