Page 14 - CMA Journal (July-August 2025)

Exclusive Interview

ICMA: What are the biggest challenges preventing
fintechs in Pakistan from moving beyond payments
to offer credit, savings, and wealth management Fintechs must move from
solutions?
descriptive dashboards to
Nadeem Hussain: The biggest challenges are
regulatory limitations, limited access to credit data, and predictive, actionable insights.
risk-averse capital. Emerging EMI players are restricted Easypaisa and JazzCash already
from offering credit or savings without partnerships or
NBFC licenses, which slows innovation in lending and hold vast transaction histories
wealth management.
that are powering instant
Another hurdle is the lack of deep SME understanding.
Many fintechs and banks try to push one-size-fits-all microloans, automated savings
products that fail to meet the unique needs of micro,
small, and medium businesses. At the same time, nudges, and personalized offers
traditional banks remain focused on safe investments,
parking capital in government securities or lending
primarily to the public sector rather than taking
calculated risks on retail or SME lending.
BNPL providers like Zood and QistBazaar are proving ICMA: What strategic role is the Pakistan Fintech
there is strong consumer credit demand, but scaling
Network playing in shaping fintech policy,
sustainably requires robust risk frameworks and richer
data. The next phase will come from digital banks and regulation, and industry collaboration?
embedded finance, which will integrate lending, savings, Nadeem Hussain: The Pakistan Fintech Network (PFN)
and insurance seamlessly into apps, e-commerce
serves as the apex organization for the country’s fintech
platforms, and merchant networks, creating tailored ecosystem, bringing together fintechs, banks, telcos, and
products for individuals and SMEs alike.
payment providers to speak with a unified voice. It drives
ICMA: You often emphasize that data should lead to structured engagement with regulators like the State
action, not just dashboards—how can fintechs in Bank of Pakistan (SBP) and the Securities and Exchange
Pakistan use data more effectively to drive financial Commission of Pakistan (SECP), and aims to ultimately
inclusion and innovation?
secure a formal seat at the table with government bodies
Nadeem Hussain: Fintechs must move from descriptive shaping national financial and digital policy.
dashboards to predictive, actionable insights. Easypaisa
PFN plays a central role in digital lending frameworks,
and JazzCash already hold vast transaction histories that
are powering instant microloans, automated savings eKYC adoption, and open banking initiatives, while also
promoting data-sharing standards and embedded
nudges, and personalized offers. Consumer credit
players use installment and purchase data to assess finance models. Its support for regulatory sandboxes
borrower risk, but the real opportunity lies in going encourages safe experimentation and accelerates the
beyond financial data. testing of new products and business models.
Open banking and data-sharing frameworks will allow By connecting various ecosystem players and emerging
fintechs to combine traditional banking data with digital banks, PFN fosters collaboration,
non-financial signals such as telco usage, e-commerce knowledge-sharing, and cross-industry alignment. This
transactions, logistics data, and social behavior to build unified approach ensures that wallets, BNPL providers,
richer customer profiles. In the emerging ecosystem, merchant acquirers, and embedded finance platforms
data is the new sunshine: infinitely available yet severely
can scale cohesively under an enabling regulatory and
under-leveraged in Pakistan. Unlocking it can fuel
predictive lending, proactive collections, and policy environment.
personalized financial journeys. ICMA: How is Planet N supporting fintech

The next leap will come from digital banks and entrepreneurship in Pakistan, and what do you look
embedded finance, where payments, credit, and for when deciding to invest in a startup?
insurance live inside retail, e-commerce, and lifestyle
Nadeem Hussain: Planet N supports fintech startups
apps. These integrations generate real-time behavioral
through capital, mentorship, regulatory guidance, and
data that can be transformed into actionable credit
market access, with a focus on ventures that drive
scoring and inclusion strategies, bringing millions of new
financial inclusion and SME enablement.
individuals and SMEs into the formal financial system.
12 ICMA’s Chartered Management Accountant, Jul-Aug 2025