Branchless banking has great potential for growth in Pakistan as was evident from the galloping increase in electronic payments which crossed Rs4.1 trillion in the last quarter of 2009, stated State bank Governor Salim Raza. He said these volumes were expected to grow substantially as Pakistan has currently 95 million mobile phone users against 26 million bank account holders.
The SBP governor made these remarks at the inauguration of Pakistan Branchless Banking conference recently in Karachi. In his keynote address on the “Need for Alternative Delivery Channels in Promoting Access to Finance,” Mr. Raza said that Pakistan was the first country in South Asia to have issued Branchless Banking regulations, providing commercial and microfinance Banks a supportive regulatory environment for developing partnerships and innovative delivery channels to promote financial inclusion in Pakistan.
There are almost 4 billion non-banked people in the world, he said, with the existing outreach in Pakistan being 12 per cent. “Hence, it is in our best interest to develop an inclusive financial system, which also provides low-income and marginalized communities with increased access to quality financial services.
Referring to three models of branchless banking operating in the country, Mr. Raza said that under the first model known as ‘Microfinance banks’ kiosks at retailers’ premises, more than 40,000 borrowers have been reached through 68 offices of Pakistan Post. Under the second model of “Retailers acting as MFB’s agents,” which was launched in October 2009, the Tameer Microfinance Bank has opened over 25,000 branchless banking customers’ accounts and the cumulative volume of transactions of branchless banking services till the end of March 2010 was over Rs 4 billion with over 1.3 million transactions.
Under the third model, which is led by commercial banks, SBP governor said, MCB Bank has registered over 60,000 customers and transacted over Rs 1 billion with over 175,000 cases.
