SBP Gov says Banks Must Pivot to SMEs or Face Extinction

KARACHI: SBP Governor Jameel Ahmad unveiled a radical 10-year banking revolution at the 10th Pakistan Banking Awards on Friday, demanding innovation, inclusion, and responsibility to break banks’ addiction to government debt and redirect firepower to SMEs and small depositors.

Ahmad praised the awards for elevating standards, then unleashed a blueprint: reorient models or perish. “Banks living off easy govt returns will be crushed by those mobilizing deposits and serving the underserved,” he warned.

Four pillars:

1. Embed digital in customer journeys and operations—mobile commerce, agri chains, AI credit scoring.
2. Harness AI/ML for smarter risk models using alternative data, craft bespoke products for start-ups and entrepreneurs.
3. Bake climate risk into lending, set sustainability targets, launch green bonds, sustainability-linked loans.
4. Realign strategies to supercharge exporters