Experts call for stronger data governance in banking sector

Business Recorder reported that experts are urging tighter data governance across Pakistan's banking sector as digital payments expand and economic ties with South Asia and the Gulf deepen. They argue that the growing volume of transactions makes stronger oversight essential. The report also highlights how bank-controlled artificial intelligence could support governance, security and financial inclusion.

Citing State Bank of Pakistan figures, the report said workers' remittances reached USD 41.6 billion in FY26, while retail payments totalled 9.1 billion transactions worth Rs612 trillion in CY25. Digital channels handled 88 percent of those payments, with 6.2 billion processed through mobile apps. Muhammad Ghazali Aqeeq, a Governance, Risk and Compliance specialist, argued that bank-controlled AI can turn operational data into decisions that regulators, boards and customers can audit.

Aqeeq said private AI could consolidate fragmented data on fraud checks, sanctions monitoring and trade finance into one auditable trail, while also flagging data quality, consent and service risks. He added that banks would keep control over where data resides, who can access it and how actions are logged, with people still reviewing material decisions. The report also cited the 2024 Financial Inclusion Index score of 58.1 and the National Financial Inclusion Strategy 2024-28 as groundwork for this shift.