branchless banking in pakistan
DESCRIPTION
Highlight on Branchless Banking, its function, penetration and growth opportunities in Pakistan, role of SBP and regional comparison.TRANSCRIPT
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