Karachi: Dr Reza Baqir, Governor of the State Bank of Pakistan (SBP), said on Wednesday (November 10) that the Islamic banking system needs to update and digitise its services and products in order to expand its reach and ensure an inclusive banking sector, according to news reports.
According to Baqir, the Islamic banking system has a huge untapped potential in all Islamic nations where a big percentage of the population does not have a bank account.
Baqir claimed that Islamic banking has not developed to the degree that it should have during the 15th Islamic Finance Services Board (IFSB) meeting in Saudi Arabia, headlined ‘Digital Transformation of Islamic Financial Services: Opportunities, Challenges, and Policy Implications.’
Furthermore, he claimed that Islamic banking will be able to reach a greater part of society by establishing specialised Sharia and regulatory standards organisations linked to fintech and digital banking. He also talked on SBP banking efforts like the Payment Systems Strategy (PSS), which is a digital onboarding platform for clients and merchants.
Similarly, products like Roshan Digital Accounts (RDA) are being developed to give millions of non-resident Pakistanis new banking options (NRPs). He also suggested that international standards agencies such as the Accounting and Auditing Organization for Islamic Financial Institutions and the International Financial Standards Board are required.