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Abstract
Banking industry consumers are exposed to unprecedented digital and FinTech experience characterised by innovative financial products and services. This development is supported by ever expanding Internet reach, proliferation of smartphone adoption and telecommunication network growth. Consequently, digital banking has emerged, introducing economies of time, cost and space for the consumers of financial services. This paper aims to diffuse the impression about the redundancy of traditional ‘brick-and-mortar’ branch structure after the advent of digital banking. The scope of the paper includes the evolution of ‘hybrid banking’, which is variously dubbed ‘bricks and clicks’ and ‘offline and online combo’, and so on. It is, in fact, the right mix of physical and digital features of banking that can cater to all categories of banking customers. The rationale of hybrid banking has been supported with various arguments and examples from the South Asian and Western banking markets. The potential of digital banking in Pakistan, given its unique demographics and trends, is highlighted. Insight and awareness presented by the paper include saving of time, space and cost using digital solutions, customer delight, cybersecurity biometric authentication, retina scanning and facial recognition, omnichannel experience, fickle customer loyalty, millennial customers, digital natives and the significance of digital specialists. Many would also be interested in the distinctive features of Pakistan’s banking market with the technology-prone youth bulge of 120 million and a vast financial inclusion gap.
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Author's Biography
Muhammad Rafiq is Country Manager at JSC Subsidiary Bank NBP, Kazakhstan. As Chairman, Management Board, he is responsible for overall operations and policy implementation. He is answerable to the shareholders and regulators of the Subsidiary Bank for business performance and banking activity. In various positions, Muhammad successfully supervised the implementation of the electronic banking system (EBS) and the core banking system (CBS) and digital initiatives like alternate delivery channel (ADC). His qualifications include MS in Banking & Finance from COMSATS Islamabad, MBA (Finance) from Punjab University Lahore, DAIBP & AIBP from Institute of Bankers, Karachi, CFA Level-I from CFA Institute, USA, and Diploma in Islamic Banking from Institute of Islamic Banking & Insurance, London (UK). He has worked at National Bank of Pakistan in various capacities such as General Manager Business, General Manager HR and Branch Manager. Muhammad strongly believes in teamwork and leading by example and aligns internal and external stakeholders with organisational goals. He is passionate about tapping human potential for professional growth. He specialises in locating and exploiting business avenues, risk management, NPL recovery, product development and relationship management. In 2016, Muhammad won a gold medal from the Institute of Bankers, Pakistan, for his essay titled ‘Impact of CPEC on Pakistan’s Banking Industry’. He regularly writes for newspapers and reputed journals on banking, finance, business and economy. His writings on banking include ‘Fintech in Banking’, ‘Beefing up Cybersecurity in Banks’, ‘Customer Loyalty Challenges in Banking’ and ‘Emotional Intelligence in Banking’.