Pakistan is Fastest Developing Market for Branchless Banking: Report
With State Bank of Pakistan demoing a constructive regulatory approach for branchless banking, a number of players are now evolving to offer branchless banking in Pakistan as a viable business model, said a report published by CGAP.
CGAP says that Pakistan has become one of the fastest developing markets for branchless banking in the world.
According to report, SBP has issued four branchless banking licenses and is considering several others. Meanwhile government is planning to further encourage the mobile banking by planning to distribute the government payments through branchless banking.
There are currently two major operators in the market with several to jump in during next couple of years.
Easypaisa, a joint venture of Tameer Microfinance and it’s parent company Telenor, claims to have over half a million mobile accounts. Easypaisa claims to have processed bill payments and domestic money transfers of worth Rs. 43 billion (US$500 million), unveils the report.
UBL Omni, another branchless banking service launched in April 2010, has reportedly won several contracts to disburse payments for nongovernment organizations and government schemes.
UBL claims to have 5,000 agents, countrywide, disbursing payments to around 2 million recipients.
New players including Mobilink, TCS, Bank Alfalah, Askari Bank and MCB are expected to enter the branchless banking market.
CGAP says that next 12 months will be critical for the newly emerging branchless banking sector in Pakistan. The evolution of the sector will likely yield important lessons for the rest of the world.