SBP governor for mitigating digital innovation-related risks

Governor of the State Bank of Pakistan (SBP), Jameel Ahmad has warned that while digital innovation offers vast opportunities for the financial sector, it also brings significant risks, including cybersecurity threats, data breaches, and challenges to consumer protection. He said that to mitigate these risks, financial institutions must go beyond basic compliance and they must have robust data protection frameworks and uphold the highest regulatory standards. “Human oversight remains essential to monitor AI driven decisions, especially in sensitive areas such as credit approval and customer due diligence,” he mentioned.While speaking at the sixth AlBaraka Forum Regional Conference, themed “Islamic Economy in the Digital Age: Innovation within the Framework of Compliance” here on Monday, Governor SBP said the global financial system is undergoing one of the most profound transformations in history and presently more than 70 percent of people worldwide use at least one digital financial service and over 80 percent are willing to shift to digital banking.