Page 12 - CMA Journal (Jan-Feb 2026)

Exclusive Interview

This approach has the potential to reshape traditional
banking by shifting it toward platform-based services The recently revised Prudential
and customer-centric delivery while preserving trust,
stability, and consumer protection. Besides inward Regulations for SME Financing
remittance, two other themes in our ongoing regulatory
sandbox are open banking and remote merchant (PRs) require banks to facilitate
onboarding. I will highlight the developments in these
themes later in the interview. end-to-end digital onboarding of
ICMA: Video KYC is a start, but when will opening a SME customers. Banks may use
bank account feel as seamless as signing up for social
media? And how close are small businesses to technology-based solutions like
accessing loans using daily digital sales data?
GPS, geo-tagged onboarding
Deputy Governor: Digital onboarding has significantly
simplified customer experience in opening an account or data, Video KYC recordings, etc.
wallets. This is evident from the significant uptake in the
number of bank accounts and wallets opened in recent for verification of SMEs’
years. However, before coming to Video KYC, it is
pertinent to mention the simplification measures business owners and their
undertaken by SBP.
business premises
SBP has issued a Consolidated Customer Onboarding
Framework whereby banks are allowed to open accounts
remotely and digitally, without requiring customers to
visit a branch. Under the framework, simplified low-risk
For the SME part of your question, the recently revised
accounts such as Branchless Banking and Asaan
Prudential Regulations for SME Financing (PRs) require
Accounts can be opened within minutes by providing
banks to facilitate end-to-end digital onboarding of SME
minimal information.
customers. Banks may use technology-based solutions
Banks are continuously improving their processes and like GPS, geo-tagged onboarding data, Video KYC
moving towards straight-through digital onboarding, recordings, etc. for verification of SMEs’ business owners
where simplified KYC/CDD requirements play a key role. and their business premises. Banks shall offer Digital
Banks are enhancing their online portals and mobile Supply Chain Financing solutions to SMEs developed by
applications, allowing customers to register, submit their own teams or in partnership with fintechs. Further,
documents, and complete identity and biometric banks can use anchor-issued confirmations for SMEs
verification digitally. Banks are also utilizing digital onboarded via validated anchors (e.g., manufacturers,
channels to collect customer information and distributors, digital aggregators, digital platforms) for
documents, making the onboarding experience simpler verification.
and more seamless.
For credit scoring, banks are required to develop digital
Video KYC comes into play where additional assurance is credit scoring models capable of leveraging data such as
required, particularly for more complex transactions, transactional and cash flow data, bank account activity,
higher-risk customers, or exception cases. It acts as a digital supply chain data, and other verifiable alternate
risk-based control, allowing banks to enhance due data sources. Under revised PRs, banks can take clean
diligence without requiring physical branch visits. Video exposure up to PKR 50 million on SMEs based on the SME’s
KYC is an important step forward, as it still highlights the cash flow strength, financial condition, creditworthiness,
regulatory balancing act between convenience and credit score, and the risk appetite of the bank.
compliance. For digital banks and EMIs without physical
ICMA: Women’s financial inclusion has surged to 52%
presence, onboarding requires a recorded video
with the WE Finance Code rolling out. What more can
interview along with NADRA biometric verification.
be done to help women entrepreneurs benefit fully
At the same time, opening a bank account continues to from digital finance?
require a higher level of scrutiny than signing up for a social
Deputy Governor: Women are central to Pakistan’s
media account, given financial, legal, and AML/CFT
socio-economic fabric. In Pakistan, they comprise 49% of
considerations. Nevertheless, the processes, information,
the population, yet their participation in the labor force
and documentary requirements are now simplified to such
stands at a mere 24%. When we further zoom in, we see
an extent that in many cases an account can be opened in
that out of 83 million working-age women, 65 million
one go, without compromising regulatory controls.
10 ICMA’s Chartered Management Accountant, Jan-Feb 2026