Nepal's banking sector, which is in a phase of rapid transformation, is maintaining its stability amid the development of digital technology, the tightening of regulations and the ups and downs in the economy. Meanwhile, financial services are moving towards digital transformation and this has made the banking process faster, simpler and more efficient.

 With the development of digital banking system, artificial intelligence (Artificial Intelligence-AI), blockchain, big data analytics, digital payment system (QR, NFC, Crypto) and cyber security have now become a basic part of the banking industry.

For a country like Nepal, the development of digital banking is not just a trend, it has now become a necessity. Therefore, the youth generation can play an important role in the field of technology and innovation in the banking sector today and that is also necessary. The banking system in Nepal has expanded significantly in the last decade. Not only banks but fintech companies, payment service providers (PSPs), payment system operators (PSOs) and digital financial service providers have also become a major part of banking services. These technologies are promoting cashless transactions and making the banking system simpler, safer and faster. 

The rise of QR payments and mobile banking has led to the introduction of a cashless economy, credit scoring and digital customer identification (KYC). Hassle-free credit systems, artificial intelligence (AI) and big data analytics, secure and transparent financial transactions, the development of a new digital bank model looks promising. Collaboration with fintech companies has also boosted banks and financial institutions.

With the growth of digital banking comes the challenges of cyber security. Lack of investment in data security, risk of cyber attacks, lack of digital literacy and regulatory strictures have limited the effectiveness of digital banking.

Nepal's banking sector is full of opportunities for the youth. This sector can become a platform for building a golden future by moving forward with technology-friendly thinking, innovative ideas and professional determination. Digital banking has provided more opportunities to the youth. 

Fintech startups in Nepal are currently in the nascent stage. New startups using digital payment systems, artificial intelligence and blockchain technology are becoming successful. On the one hand they are expanding their businesses well and are getting credit facilities at reasonable rates and reasonable profits. With the growth of digital banking, banks and financial institutions are increasing their investment in cyber security, which offers new opportunities for young people. Youngsters who study cyber security can secure their career in this field. 

Likewise, data analytics and artificial intelligence are now being used by banks and financial institutions to analyze the financial activities of customers. The use of big data analytics and AI can be strengthened as well as broadened. 

The way forward is digital banking. This is confirmed by looking at the development and expansion of digital banking in Nepal since one or two years. However, there is a lack of qualified, experienced and skilled manpower for this sector. With the development and expansion of this sector, the demand for skilled manpower (experts) is high. Therefore, skilled youth can easily find opportunities in areas such as digital financial services, credit scoring systems and digital lending. By which their skills and competences can be improved as well as a good and sustainable source of income. However, to take advantage of these opportunities, youth need to be familiar with digital financial systems, cyber security, blockchain, and artificial intelligence. For this, it is necessary to have the study of related subjects, teaching, experience collection, latest thinking, adaptation to policy rules, encouragement and protection of the state or regulatory body and effective regulation. 

Although digital banking in Nepal has achieved many achievements, various challenges are yet to be solved. Technology doesn't always stay the same. It changes with time and context. Therefore, along with the digital transformation, the challenges are also increasing. 

Lack of digital infrastructure is the most important challenge in Nepal's banking system. Access to digital financial services is poor in rural areas due to limited internet access. In the absence of quality infrastructure, the development and expansion of this sector cannot accelerate. Therefore, it is important to pay attention to all stakeholders including banks and financial institutions, regulatory bodies in relation to digital infrastructure in the banking system. 

Regulation in the field of digital banking is important to move forward in a balanced manner, which helps to secure and sustain innovation. Nepal Rastra Bank is promoting digital banking, due to which opportunities to adopt new technologies are also increasing. Now is an opportune time for fintech companies in the region to expand their businesses, build institutional capacity and establish new companies. Along with regulation, such companies should be given the necessary protection and incentives, which will further strengthen the digital financial system. In this direction, the cooperation and support of the relevant agencies is necessary. Now is the time to establish new companies in this area, expand business and increase institutional capacity. Such companies need protection and encouragement along with regulation. 

With the development of digital banking, the risk of cyber security has also emerged as a strong challenge. Various incidents related to hacker, fraud, data theft, theft of money by detecting PIN code and password, cyber fraud have also increased in the banking system of Nepal. To avoid these problems, banks and financial institutions, customers, and regulatory bodies should all be aware. For this, citizens should also be financially literate. Financial literacy requires a joint initiative of all banks and financial institutions, stakeholders, regulatory bodies and the state. Although skilled manpower has been produced in digital banking in Nepal, migration of young manpower has been seen as the main challenge. Most of them are migrating abroad after being attracted to foreign companies.

In recent years, the young people of Nepal are rapidly migrating abroad. Not only in the banking sector, skilled manpower in information technology, engineering and financial technology is increasingly moving abroad in search of higher salaries and stability. Even though banks have invested in producing talented young people in technology, they have not been able to sustain them in the banking sector in the long term. The

exodus tends to erode innovative thinking. As skilled young people who have learned international banking practices go abroad, the innovative thinking in Nepal is weakening, while the old thinking is continuing. There is also a risk that the pace of development and expansion of this sector will be affected due to lack of enthusiasm and latest thinking. Its effects are now visible. Because the pace of development of digital banking seems to have slowed down in the last one/two years. In order to speed up the pace of technology development, skilled manpower is needed in Nepal.

Digital banking is likely to expand massively in Nepal in the next five to 10 years. The government and the private sector are jointly carrying out various programs for the expansion of digital banking and encouraging cashless transactions. As a result, the possibility of establishing digital banks is increasing, policy debates are underway to regulate cryptocurrencies, and work is underway to make financial transactions more transparent using blockchain technology. Automation of customer service can be done effectively using artificial intelligence.