DIGITAL BANKING DIGGING : PRECIS

Digital banking needs strong Internet, secure systems and smooth applications. The developing world needs robust infrastructure.

'' Digital banking is not just an app, it's a complicated setup,'' said Farhan Ahmed, a fintech adviser. ''

Many license holders lack systems to handle real-time transactions or protect user data,'' he added.

Muhammed Ali Inayat, CEO of Kinverg, a cybersecurity company, highlighted another layer of complexity, ie, the mismatch between digital banking's target audience and developing world's connectivity realities.

'' The concept of digital banking is for those who live in remote areas and lack access to banks. They may have a smartphone, but not reliable internet. Take the case of  Pakistan : '' It will be initially tough for digital banks to reach their target customers.

Internet coverage in Gilgit-Baltistan, Skardu, Balochistan and other remote regions is inconsistent at best.''

Frequent Internet outages and low smartphone use in villages force banks to focus on basics like  improving network stability.

One bank official said on condition of anonymity, '' We are struck at bargaining with telecom companies instead of building services.

Apart from connectivity issues, a lack of cohesive strategy among some license holders has made the situation more confusing.

The World Students Society thanks Shahram Haq.