branchless banking in pakistan

Branchless Banking “Mobile Banking”

An overview and comparison with Regional Economy

Shoaib Lalani

11541

An overview of Branchless Banking

• What is Branchless Banking?

• Pioneer of Branchless Banking

• Products of Branchless Banking

Presented By: Shoaib Lalani

Era of Mobile Banking

• “Mobile banking a game changer” – says Governor SBP

• What is Mobile Banking?

• History of Mobile Banking

• Well know players in Mobile Banking

Presented By: Shoaib Lalani

Advantages of Mobile Banking

• open up to 24 hours a day, depends on the agents

• very small fees for the agents

• may withdraw or deposit a small amount such as $1

• no need for a bank account, only a mobile phone number

• generate low income for thousands of agents

• very small bank overhead

• suitable for many people with low income

• suitable for many people with low literacy

• reduced transportation costs and time due to close proximity to multiple agents

Presented By: Shoaib Lalani

Participant of Mobile Banking

• Mobile Network Carrier

• Bank

• Agents

• Individuals

Presented By: Shoaib Lalani

How it Works?

Presented By: Shoaib Lalani

Receiver

BANK

Network

Agent

Sender

Network

Agent

Services?

Major Players in Pakistan

• EasyPaisa – Telenor – Tameer Microfinance bank

• UBL Omni

• Mobi cash – Mobilink – Waseela Microfinance bank

• Timepey – Zong – Askari Bank

• Upaisa – Ufone – Ubank

• Others

Presented By: Shoaib Lalani

Role of State Bank of Pakistan

•Strict rules and regulation

•Formulate guidelines

•State bank perspective Presented By: Shoaib Lalani

Highlights of Mobile Banking

Presented By: Shoaib Lalani

Source: State Bank of Pakistan

Highlights of Mobile Banking

Presented By: Shoaib Lalani

Source: State Bank of Pakistan

Highlights of Mobile Banking

Presented By: Shoaib Lalani

Source: State Bank of Pakistan

Highlights of Mobile Banking

Presented By: Shoaib Lalani

Service Value Source

Zong – Timepey PKR 44million worth of

Transaction in 2012

The news tribe

Telenor – EasyPaisa Total transaction of PKR

140 bn to date.

Telenor website

UBL – omni 34% increase in

transaction value in third

quarter of 2013

UBL consolidated

accounts summary

Hindrance in Mobile Banking

•Non availability of 3G and LTE technology

• Infrastructure.

• Security issue.

Presented By: Shoaib Lalani

Future Outlook of Mobile Banking in Pakistan

Presented By: Shoaib Lalani

• Annual growth of 35% predicted by BCG.

• 12% have access to financial services versus 70% of adult

population.

• Technology growth

Regional Peers

• M-pesa - India – Vodafone

• Banglalink and Citycell - Bangladesh

• Ghar Angan Banking Sewa - Katmandu – BoK

• Mobile Khata – Nepal

• M-Pesa and ZAP - Kenya

Presented By: Shoaib Lalani

Regional Comparison - Bangladesh

Presented By: Shoaib Lalani

Pakistan Bangladesh

Transaction value $879 mn $1,030 mn

Transaction volume 34.3 mn 33.8 mn

Avg. transaction value $26 $31

Agents 42,000 71,000

Regional Comparison - India

Presented By: Shoaib Lalani

•Government perspective

•3.14% service fee

•Reserve Bank of India’s role

Thank You!!!!

Presented By: Shoaib Lalani