Pakistani Banks Turn to AI for Faster Customer Onboarding and Fraud Detection
Pakistani banks should adopt artificial intelligence to speed up customer onboarding and strengthen fraud detection, according to industry experts. AI systems can reduce onboarding time from days to minutes while improving compliance with Know Your Customer (KYC) requirements.
The State Bank of Pakistan reports that more than 91 million individuals hold over 200 million bank and wallet accounts across the country. Yet a critical gap exists between financial access and financial literacy. Access to financial institutions rose from 14% in 2014 to 45% in 2024, but basic financial literacy improved only from 16% in 2016 to 22% in 2024.
This mismatch creates risk. More people with financial services but limited understanding can lead to poor decisions, over-indebtedness, and unused services. Banks expanding digital onboarding have also seen fraud exposure increase.
What AI Can Do
AI-based systems help banks attract customers more efficiently while preventing account misuse and detecting fraud. The technology also reduces operational costs.
Several banks in Pakistan have already introduced AI applications for customer service and verification. Major initiatives like AI-driven onboarding, compliance automation, and fraud detection remain less common, however.
Noman Ahmed Said, CEO of SI Global Solutions, said that "artificial intelligence is rapidly transforming the global financial sector." Singapore, the United Arab Emirates, the United Kingdom, and the United States have successfully deployed AI-driven banking systems to improve efficiency and reduce fraud.
AI can strengthen anti-money laundering monitoring and improve market surveillance-capabilities that could help attract foreign investment to Pakistan's financial sector.
Recent Progress
The banking regulator recently allowed commercial banks and fintech operators to open accounts and wallets for teenagers aged 13 to 18, targeting nearly 26 million individuals. The initiative aims to promote financial literacy and digital inclusion among youth.
Dun & Bradstreet, a global company operating in Pakistan, partnered with Anthropic to integrate business risk data into Claude. The collaboration will allow financial institutions to automate KYC and Know Your Business (KYB) processes within a single interface, replacing manual verification and lengthy processing cycles.
Nauman Lakhani, Group Director Products at Dun & Bradstreet South Asia, Middle East and Africa, said that "embedding verified data directly into workflows can help organisations strengthen governance and make decisions with greater clarity."
The Talent Question
Pakistan must invest in developing local expertise in AI and fintech, experts say. This would support domestic banks and financial markets while creating opportunities for Pakistani professionals to work with international institutions.
AI adoption in financial markets is now essential for growth and competitiveness. Without investment in local talent, Pakistan risks falling further behind in the global digital financial economy.
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