Kathmandu FinteK Review: Digital Nepal Framework 2.0 Analysis & Insights
27th March 2025, Kathmandu
Kathmandu FinteK’s expert review of Nepal’s Digital Nepal Framework 2.0 reveals critical gaps in implementation, DPI development & private sector inclusion.
Kathmandu FinteK Review
Key recommendations for a stronger digital transformation roadmap. However, experts believe the framework lacks a clear implementation plan and fails to address critical gaps in digital public infrastructure (DPI), data governance, and private sector collaboration.
Key Highlights from Kathmandu FinteK’s Review
DPI Implementation Plan Needed: The framework mentions the importance of identity, payments, and data exchange as key building blocks. However, it lacks a clear plan for its implementation. Experts suggest that Nepal could benefit from examples like India’s Aadhaar (identity), UPI (payments), and DigiLocker (data exchange), which have structured frameworks and successful track records. A more detailed roadmap is essential for Nepal’s digital infrastructure.
Weak Data Governance & AI Strategy: While AI adoption is emphasized across sectors, the framework neglects the crucial aspects of data collection, storage, and governance. These are vital for AI to work efficiently. Experts call for a national data policy that ensures security, privacy, and interoperability to support AI and other digital initiatives.
Missing Plans for Central KYC and Payment Interoperability: A Centralized KYC (Know Your Customer) system could simplify financial services and reduce fraud, but the framework does not provide enough details on how this will be achieved. Moreover, payment interoperability, which would allow seamless transactions across banks, wallets, and fintech platforms, is not addressed. There is also a lack of a National Data Exchange Platform for secure data sharing.
Limited Private Sector Involvement: The framework appears to be primarily driven by the government, with secretaries and ministers leading the initiative. However, the private sector, fintechs, and startups are not included in the decision-making process. Experts urge for a more collaborative governance model that includes these stakeholders. Involving the private sector would ensure better execution and faster adoption of digital initiatives.
Too Much Jargon, Too Little Action: Terms like “AI hubs” and “predictive models” sound impressive but assume that Nepal is already digitally mature. Experts recommend that the government take a phased approach. They suggest setting 1-year, 3-year, and 5-year milestones to make the plan more realistic and achievable.
What Needs Improvement?
Clarify DPI: The framework should define Digital Public Infrastructure clearly, with a focus on identity, payments, and data exchange.
Involve the Private Sector: Instead of just consulting the private sector, the framework should include them in governance and decision-making processes.
Prioritize Key Areas: The framework should prioritize Central KYC, payment interoperability, and data sharing.
Strengthen Data Infrastructure: Before pushing for AI, the government should first strengthen the data infrastructure.
Actionable Plan: The framework needs clear timelines, responsibilities, and actionable steps to ensure effective implementation.
Expert Insight
According to Umesh Rijal, a key contributor to the Kathmandu FinteK review, “The DNF 2.0 has a strong vision, but its execution will determine its success. Nepal needs to focus on building foundational infrastructure, engage the private sector in the process, and set realistic goals to ensure a truly inclusive digital economy.”
Next Steps
The Government of Nepal is seeking public feedback to refine the framework. Stakeholders hope the concerns raised will result in a more detailed and executable plan, ensuring that Nepal’s digital transformation is scalable, secure, and ready for the future.
For more: Kathmandu FinteK Review
