Page 65 - CMA Journal (July-August 2025)

Focus Section

However, Fintech also carries risks due to the lack of • Advising the receivable collection team to follow up
personal contact between buyers and sellers, creating on old receivables.
opportunities for fraud.
• Reviewing credit limits of overdue customers to
There are over 448 Fintech companies in Pakistan, with a minimize bad debts.
market value of over US$500 million. The sector is
expanding rapidly but faces obstacles such as • Extending discounts to early payers.
ambiguous government policies, lack of awareness, and • Reviewing credit policies.
low investment. To expand Fintech, the government
must declare a clear long-term policy, encourage online Fintech and Data Analysis are valuable tools for
banking and digital payment systems, and discourage sustainable growth, enabling digital transaction records,
cash transactions (though currently, the government is automated record-keeping, and online billing.
considering increasing cash transaction limits from 2 to Management accountants can achieve significant
25 lakh rupees – Jang, 24th July 2025). With a population improvements through:
of 240 million, mobile phone subscribers exceed 193
• Efficient Operations: Automating manual work and
million. The State Bank of Pakistan aims for digital reducing costs.
payments of US$36 billion by the end of 2025. Digital
banking services, along with personal account • Fruitful Decision-Making: Basing decisions on
management and expanded banking services, will logic, facts, and past trends.
gradually reduce the grey economy.
• Customer Knowledge: Using historical data to
Every organization records each financial transaction in understand customer behavior and preferences.
an accepted format to track the sources and uses of
funds. This generates a heap of accounting data, which • Financial Inclusion: Providing access to financial
can be used for various purposes, especially to assess services, especially for the underserved.
organizational efficiency and maintain sustainability. Economies of developing countries can benefit from
adopting Fintech and Data Analysis approaches. In
The Growing Role of Data Analysis Pakistan, around 200 state enterprises suffer huge losses,

Data Analysis is rapidly expanding across industries due costing taxpayers over Rs. 2 billion per day. These units
to its valuable applications in decision-making, face serious management issues. Confidently applying
supported by logic, trends, and reasoning. It ensures Fintech and Data Analysis techniques can help improve
decisions are fruitful, customers are satisfied, costs of their performance.
production are controlled, and efficiency is improved. Conclusion
Data points are interrelated; for example, electricity
consumption and direct labor costs have important Pakistan’s financial landscape is rapidly growing with
relationships with the number of units produced. Fintech and Data Analysis innovations. The State Bank of
Intelligent data analysis leads to innovation—new Pakistan fosters collaboration with Fintech organizations,
methods and techniques provide a competitive edge, while digital companies facilitate online payments,
making an organization smarter in its industry. particularly in remote areas and abroad. Small businesses
and individuals are using digital lending facilities.
By analyzing data, efficiency is improved, and decisions
AI-powered Data Analysis has become a useful tool to
are informed not just by experience, intuition, or market
enhance risk management, improve audit performance,
trends, but by figures generated from past actions and
provide business insights, benefit investors and
results. This allows modifications as necessary,
stakeholders, boost creativity, and ensure true returns on
minimizing further risks. Workflow bottlenecks and
investments.
repetitive tasks are identified, enabling automation and
reducing labor costs and time. Data analysis also helps in Physical inventions have provided the foundation, while
inventory control by optimizing stock and improves smart and mindful usage through Fintech and Data
supply chain management. Analysis has maximized their impact on human progress
and welfare. These technologies serve humanity by
Management Accounting and augmenting efficiency and productivity.
Organizational Efficiency
About the Author: Syed Shamim Ahmed is a Fellow member of
Management accountants have the expertise to leverage ICMA. He retired as General Manager Finance from the Karachi Port
Fintech and Data Analysis, as every financial transaction Trust (KPT) where he served for around 22 years in various positions.
passes under their review. For example, a single Aging He was also a member of the Karachi Dock Labour Board for 7 years.
After earning his MBA from IBA Karachi, he began his career at
Schedule of Accounts Receivable can significantly
Citibank before moving to Awami Autos (now Pak Suzuki).
improve cash flow by:
ICMA’s Chartered Management Accountant, Jul-Aug 2025 63