AN EXPLORATORY INVESTIGATION OF THE DIGITAL ECONOMY ON FINANCIAL INSTITUTIONS IN PAKISTAN

Abstract

The delivery of financial services was revolutionized by digitization, which compelled financial institutions to adopt technology that enables them to provide the best appropriate service at a reasonable price. However, due to recent disruption in the country's financial system, financial institutions must incorporate modern technologies to help lower ineffectiveness and improve service quality. This study investigates the impact of digital economy on financial sector competence. According to literature studies, financial organizations in Pakistan are attempting to adopt and integrate digitization into their operations. Given that a generous portion of Pakistan's population is considered digitally illiterate, the number of people who signed up for and used digital financial products was staggering. Therefore, financial institutions must incorporate their business functions with pertinent technology to maintain and improve profitability. Furthermore, they must invest in digital infrastructure and human resource training to incorporate technology in providing services. Policymakers should also strengthen data security and cybercrime laws, policies, and regulations to allow market participants for free and confident operation.