Branchless Banking

The Easy paisa WayCase: Easy paisa

By KAMRAN ALI

HUMEERA MUMTAZFAYAZ HUSSAIN ANAM RAJPUT

INTRODUCTION

Improving lives by making financial services available at there door step, this is the motive of easy paisa.

This wonderful dream seen by Mr. Nadeem Hussain in 2009

Welcome to the world of convenience, easy paisa provide a largest branchless banking service in Pakistan.

Pakistani market has lot of potential in this industry.

needs180 million people

12% have access to formal financial services

35% are using informal financial services

How do they…

•Pay Bills•Transfer Money•Save Money•Get Insurance

In 2008 Mr. Nadeem sold 51% of his equity to telenor Pakistan.

In Pakistan only 15 to 20% people have access formal banking channels, rest of 80% people have no formal linkage between banks, so here a big opportunity to grab the market, and telenor Pakistan is most active to provide financial services through easy paisa.

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BB extends reach of conventional banking

Analysis of easy paisa business model?

As a brand, one of the major indicator of easy paisa success has been its wide spread awareness.

In a very short span of time, it has become a well know name across segments. Just like Easy load quickly established itself as a brand for the top-up option, easy paisa in a similar fashion is fast becoming a standard for branchless banking in Pakistan. Within a few months of launch, the brand is widely recognized for its package of convenience and accessibility.

Attractive value propositions for all parties

The analysis shows that, people are now save the time rather than queue a line outside the bank to pay the utility bills and other financial activities.

Telenor easy paisa provide all possible functions which is performed in the bank, like cash withdrawals, deposits transfer the cash and other functions.

Easy paisa will allow users across the board to access convenient and secure financial services. In an environment, easy paisa promises access, security, freedom and convenience.

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What challenges you see for easy paisa in the future??

Technology growth.

Monopoly of PTA.

There is an imbalance between prices of inputs and output

SBP set tough rule for branchless banking which faces by these sector.

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Still a lot of potential in the market, because the rural areas of Pakistan faces difficulty to transfer cash to their relatives families and so on

Easy paisa have a dedicated team of Professional working on solutions for corporate entities. So yes, the future of easy paisa looks very exciting.

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Customer awareness.

Increasing competition

Challenges in electronic billing includes transactions delivered at wrong city, issues with the codes, etc.

Associated extra charges with the service.

After initial assessment, Level 1 KYC regulation may need to be rationalized for uptake

Access to reliable mobile technology and partners with similar strategy and investments. Longer term sustainability of partners is important.

Branding & Marketing – budgets and appropriate execution Financial capability amongst users. – focus on early adopters Mass registration – the marketing challenge Win-Win Revenue Share – what’s in it for the stakeholders Building a community of stakeholders (who are often competitors) Accepting the

approach of Master Acquirer Building the Agent network Customer care – who supports the user? Payback period – a long-term proposition?

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Recommendations Decision making is highly centralized and

empowerment is not appreciated as much but to some extent.

CNN have termed easy paisa, the model for the future. I am confident that Mobile Account will generate even more interest by providing increased convenience to the customer.“

Considering that 89% of adult population in Pakistan is unbanked and 62% use mobile phone services, easy paisa aims to provide financial inclusion for the urban as well as the rural population.

provide services to those who do not have access mobile connections.

provide better financial services through mobile services,

exploring the possibilities of technology for the future through Near Field Communications, the Internet and other technologies.

Easy paisa should look for upcoming threats and new entrants that they are going to face sooner or later.

They have to treat existing customers with new and exciting ways. And to keep them grow.

They have to manage many to many model by making new innovations.

Building and training the Agent network

Human ATMs and Payment Points

Stakeholder participation

Trusted service branding and marketing is key

Central Bank regulation on minimal and partial-KYC to encourage and promote micro-account adoption.

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