The integration of information communication technology in the global banking industry has brought an overall tremendous change in the banking sector. Banks are in close competition, and they try to attract more customers by facilitating more conveniences to capture more market share. These new trends with the emergence of AI and new technology in the era of 4^th Industrial revolution is changing the industry and creating many new and exciting opportunities.

Almost half the world’s adult population lacks access to a formal bank account and other financial services. Pakistan is no exception and it is also among those countries at the lower end of the spectrum of financial inclusion. However, steps are being taken by government regulators and the private sector to improve access to financial services such as credit, savings, remittances and insurance. The introduction of digital banking is a notable step in this context. Digital banking, which comprises mobile wallets and over-the-counter transactions, is rapidly growing around the world and has the potential to reduce barriers to financial inclusion and thus transform economies. The benefits of this platform are even more pronounced for economies with a weak financial architecture and where formal banking entails considerable costs in terms of time and distance.

Pakistan is the fastest growing telecommunication market in the World followed by only 12% of the population being banked. According to the State Bank of Pakistan (SBP), as many as 3.1 million users have been registered with 28 banks offering internet banking services. These users employed internet banking services 31.2 million times and made transactions amounting to Rs.1.2 trillion during FY18. The transactions showed a growth of 23.9% and 30.3% respectively compared to the previous year.

The competitive landscape in banking and financial services has changed, and standing still is not an option. The challenge lies in adopting a holistic approach in going digital and integrating innovative strategies across the banking ecosystem by embracing a fully diversified spectrum having end-to-end modernization of a bank’s often outdated digital infrastructure.

Digital banking scales and succeeds only when it’s approached from a broad point of view that allows for increased customer satisfaction and informed cross-selling and up-selling. Digital modernization gives traditional banks a second chance. A smart, enterprise-wide approach positions them to deepen customer satisfaction and loyalty, driving long-term relationships and profitability. Such an approach also has the potential to meet consumers’ expectations and bring banking back to the bank. Embracing a fully digital strategy requires end-to-end modernization of a bank’s often outdated infrastructure. Equally important, it requires a transition from an account-based view of banking customers to one that knows them as individuals and enhances the customer experience with relevant, convenient and personalized products and services.

This has prompted us to honor the financial organizations working in the financial sector to improve their service by opening the doors of innovation and AI in digital banking applications to cater the unattended audience into inclusion of digital ecosystem.