Muhammad Hamayun Sajjad, CEO at Mashreq Pakistan, explains how digitalization drives financial inclusion
At a time when Pakistan’s overall financial inclusion rate stands at 64%, the country’s rural communities are at the brink of a pivotal turning point. The time seems right for the promise of financial inclusion to transform from a ‘distant dream’ to a ‘real present force’ for rural upliftment.
So far, despite the rapid digitalization of urban banking, rural communities of Pakistan have lacked access to formal financial systems. Low digital literacy and the absence of physical banking infrastructure, exacerbated the disparity, creating significant barriers to empowerment.
The country today is looking at a pivotal potential opportunity. As the digital tide rises, there is a transformative force emerging from within – one that promises to reshape the landscape of banking, not just for urban dwellers but for the millions in Pakistan’s rural heartlands. This shift is being shaped by the efforts of industry leaders, including Muhammad Hamayun Sajjad, CEO of Mashreq Pakistan, whose focus is on creating more inclusive financial access, “Banking for All” as he calls it, across the nation.
Hamayun’s dedication to bridging the rural-urban divide is driven by a profound understanding of the challenges facing underserved communities. In an insightful conversation, he emphasizes that this isn’t merely about expanding banking services – it is about radically altering how rural Pakistan interacts with finance.
“For far too long, rural Pakistan has been left behind in the conversation on financial empowerment,” he says. “In my experience, I have witnessed firsthand the transformative power of banking in unlocking untapped potential. But the question I get asked a lot: how do we make this transformative potential available to those who need it most?”
The answer, he says, lies in digital financial solutions.
Hamayun’s vision is clear – digital financial services are not just a means to provide banking, but rather serve as catalysts for economic empowerment. His approach goes beyond enabling transactions. It is about creating an ecosystem where rural communities are equipped to save, borrow, and transact seamlessly, without needing to leave their villages in search of a better life.
Hamayun highlights a crucial factor driving the shift toward financial inclusion—the growing reliance on digital banking for ‘everyday transactions’ also called micro-transactions, particularly among lower-income earners. “We are seeing an interesting pattern in how digital banking is expanding financial access,” Hamayun explains. “A large portion of micro-transactions today come from individuals just above the bottom of the pyramid—riders, laborers, plumbers, electricians—who primarily work in urban centers but have families in rural areas. While most of these payments happen in cities, the true impact is felt in their hometowns. Instead of carrying cash when they visit, they use ATM cards and digital banking accounts, inadvertently introducing their families to formal financial systems. Over the past decade, this shift has gained momentum, and today, we are at a critical inflection point. Digital banking is no longer just an urban convenience—it’s becoming a necessity, creating an opportunity to accelerate financial inclusion at scale.”
This evolving landscape presents an unprecedented opportunity to reshape financial access. As digital banking extends its reach, its potential to serve rural economies becomes clearer. The next step, Hamayun believes, is to build on this momentum and create an ecosystem where financial services are seamlessly integrated into everyday life. “Imagine a future where a farmer can receive payments, access loans, and buy inputs—all through his/her mobile phone. This is the revolution we are building,” he states.
Mashreq Pakistan is focused on bringing these ideas to life with digital-first solutions tailored to the needs of underserved communities. By leveraging technologies such as AI and blockchain, Mashreq is reshaping banking to make it more accessible. The goal is to create personalized, secure banking experiences that fit the changing needs while evoking and building trust in Pakistan’s emerging financial landscape.
While progress is being made, Hamayun highlights two key obstacles standing in the way of broader financial inclusion: 1) financial literacy and 2) infrastructure. In rural areas, many people still lack a basic understanding of banking, which makes them hesitant to trust formal financial systems. Without this trust, digital banking solutions struggle to gain traction.
“Financial literacy is a major challenge,” says Hamayun. “People often don’t realise how digital banking can improve their lives. They may have heard of it, but there’s a mistrust in formal and digital banking that holds them back. Our job is not just to offer solutions, but to help people see how these services can truly benefit them while simplifying and securing them well, for them to reap those benefits.”
In many rural areas, cash continues to dominate. People are used to transacting in person, and access to formal banking is limited. Digital solutions simply aren’t available in many regions, making it even harder to bring people on board.
“The infrastructure challenge is undeniable,” Hamayun says. “But the solution isn’t just about building more branches or adding digital tools. Expanding physical infrastructure isn’t feasible in many rural areas, and it would take years to bridge the gap. Instead, the key is to educate the nation, raise awareness of digitalization and empower people to adopt digital modes of banking. We must create an ecosystem where digital banking fits seamlessly into the daily lives of those in rural communities, making it an accessible and secure choice.”
Pakistan’s broader financial inclusion strategy, which aims to raise the national financial inclusion rate to 75% by 2028, hinges on addressing both these challenges. Financial education and infrastructure improvements must work hand-in-hand to ensure that rural communities can fully benefit from digital banking.
Mashreq’s global success provides a strong foundation for its initiatives in Pakistan. Operating in multiple countries across the MENA region, Mashreq has consistently been at the forefront of digital banking innovation, gaining wide recognition for its ability to stay ahead of technological trends while always keeping customers’ needs at the center of its operations and solutions. Hamayun highlights how this international experience shapes Mashreq Pakistan’s approach in the country. “Our global presence allows us to learn from the best practices of digital transformation in other countries. We have seen the power of integrating digital tools with local contexts, and we are bringing that expertise to Pakistan to create a financial ecosystem that works for everyone.”
Hamayun’s ultimate message is one of collective action, emphasizing that financial inclusion is not a challenge only for banks to solve. “The future of financial inclusion depends on collaboration across the public and private sectors, fintechs, regulators, and mobile service providers,” he says. This call to action resonates deeply with the efforts already underway by the State Bank of Pakistan (SBP) and the government.
The SBP’s focus on increasing financial inclusion, coupled with the government’s policies to enhance digital infrastructure, are commendable steps in the right direction. Hamayun acknowledges the pivotal role these institutions are playing, recognizing their commitment to improving access to financial services across Pakistan. “The work the SBP and the government are doing is crucial,” he adds. “Their efforts to create a more inclusive financial ecosystem have laid the groundwork upon which we are now working to build. We share the same vision of “a future where financial services are accessible to all.”
Mashreq’s role is but one piece of the puzzle, but it is a piece grounded in the belief that collaboration is key. “We must create an inclusive financial ecosystem where everyone, no matter where they are, can access the services they need,” says Hamayun. “This is a shared responsibility and a vast opportunity.”
Mashreq is fully aligned with the goals of the SBP and the government, working hand-in-hand to ensure that digital banking solutions are not just accessible but transformative for all segments of the population.
As Hamayun reflects on the path ahead, his eyes remain fixed firmly on the horizon. The journey is long, but the potential for transformation is immense. “This is just the beginning,” he says. “Our vision is to not only provide banking services but to empower individuals, especially in rural areas, so they can take charge of their financial futures. We are building the foundation for a Pakistan where financial inclusion is the norm, not the exception. And it starts here, with all of us working together.”
