The Association of Chartered Certified Accountants (ACCA) has
released a new report as part of Research and Insight (R&I). The report
looks at the boom of Financial Technology (FinTech), its impact on the
financial service landscape, and how it will offer a real opportunity for
Pakistan to establish itself as the centre of global finance.
The report, FinTech – transforming finance, finds that
FinTech’s impact on finance and banking is as revolutionary as the internet on
other areas of the economy. The rapid growth of such firms in the face of
traditional regulatory models could increasingly become a barrier to success.
Sajid Khan, head of ACCA International Development, says the
report highlights the opportunity for Pakistan’s IT sector
‘Despite the US
benefitting from a head-start thanks to Silicon Valley’s global standing as an
innovation centre, progress has been slowed through legislative and licensing
hold-ups. This has really opened the door for other markets where a combination
of supportive regulatory framework and high digital investment is allowing the
sector to flourish.
Given
the development of a highly skilled IT sector in Pakistan in recent years,
which could be worth $11 billion over the next five years, the potential
restructuring of the global finance sector offers a real opportunity
Mr Sajid Khan also thinks that the growth
of FinTech also relies on the guidance and insight of finance professionals,
‘While
FinTech opens a range of possibilities for business, from new banks to
streamlining payments and lending, exploiting these opportunities will require
adaptation from firms as well. We are already seeing a burgeoning ‘RegTech’
(Regulation Technology) sector which can use automation and data-analysis to
provide intelligent, low-cost solutions to streamline this process.
Understanding
the intricacies of global best practices and adapting them for
varying national contexts can set aspiring FinTech hubs on a
course for success.’
Mr Sajid Khan thinks that, rather than threaten the accountancy
profession, FinTech will particularly benefit professional accountants with a
highly developed, globally-focused skill-set,
The
global competition in FinTech and RegTech has greater potential than just for
IT companies. Whether it is reducing the costs of international trade for
Pakistani businesses or making it easier for global companies to use India as a
geographical hub, technology adoption will also necessitate transformations in
tax compliance, audit and reporting processes
‘This
will in fact place greater emphasis on the importance of having
forward-thinking professional accountants equipped with a strong digital
understanding and strong knowledge of international working to guide firms
through the opportunities and challenges ahead.’
Mr Sajid Khan also thinks the development of FinTech will be
good news for consumers as well as businesses,
‘While the scale of transformation is hard to predict, there is no
doubt that the impact of FinTech across the traditional functions of finance
has been significant. Major banking institutions are already responding through
large-scale research and investment in the face of competition from start-up challengers.
This is good news for consumers and firms, as the explosion of choice in a
traditionally conservative industry offers a range of new possibilities of
doing business based around their bespoke needs.’
About ACCA
ACCA
(the Association of Chartered Certified Accountants) is the global body for
professional accountants. It offers business-relevant, first-choice
qualifications to people of application, ability and ambition around the world
who seek a rewarding career in accountancy, finance and management.
ACCA
supports its 188,000 members and 480,000 students in 178
countries, helping them to develop successful careers in accounting and
business, with the skills required by employers. ACCA works through a network
of 95 offices and centres and more than 7,110 Approved Employers
worldwide, who provide high standards of employee learning and development.
Through its public interest remit, ACCA promotes appropriate regulation of
accounting and conducts relevant research to ensure accountancy continues to
grow in reputation and influence.
Founded
in 1904, ACCA has consistently held unique core values: opportunity, diversity,
innovation, integrity and accountability. It believes that accountants bring
value to economies in all stages of development and seek to develop capacity in
the profession and encourage the adoption of global standards. ACCA’s core
values are aligned to the needs of employers in all sectors and it ensures that
through its range of qualifications, it prepares accountants for business. ACCA
seeks to open up the profession to people of all backgrounds and remove
artificial barriers, innovating its qualifications and delivery to meet the
diverse needs of trainee professionals and their employers. More information is
here: www.accaglobal.com
