Highlight on Branchless Banking, its function, penetration and growth opportunities in Pakistan, role of SBP and regional comparison.

1. Branchless Banking
“Mobile Banking”
An overview and comparison with Regional Economy
Shoaib Lalani
11541

2. An overview of Branchless Banking
• What is Branchless Banking?
• Pioneer of Branchless Banking
• Products of Branchless Banking
Presented By: Shoaib Lalani

3. 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

4. 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

5. Participant of Mobile Banking
• Mobile Network Carrier
• Bank
• Agents
• Individuals
Presented By: Shoaib Lalani

6. How it Works?
BANK
Network
Agent
Sender
Presented By: Shoaib Lalani
Network
Agent
Receiver

7. Services?

8. 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

9. Role of State Bank of Pakistan
• Strict rules and regulation
• Formulate guidelines
• State bank perspective
Presented By: Shoaib Lalani

10. Highlights of Mobile Banking
Presented By: Shoaib Lalani
Source: State Bank of Pakistan

11. Highlights of Mobile Banking
Presented By: Shoaib Lalani
Source: State Bank of Pakistan

12. Highlights of Mobile Banking
Presented By: Shoaib Lalani
Source: State Bank of Pakistan

13. Highlights of Mobile Banking
Service
Value
Source
Zong – Timepey
PKR 44million worth of
Transaction in 2012
The news tribe
Telenor – EasyPaisa
Total transaction of PKR Telenor website
140 bn to date.
34% increase in
UBL consolidated
transaction value in third accounts summary
quarter of 2013
UBL – omni
Presented By: Shoaib Lalani

14. Hindrance in Mobile Banking
• Non availability of 3G and LTE technology
• Infrastructure.
• Security issue.
Presented By: Shoaib Lalani

15. Future Outlook of Mobile Banking in Pakistan
• Annual growth of 35% predicted by BCG.
• 12% have access to financial services versus 70% of adult
population.
• Technology growth
Presented By: Shoaib Lalani

16. 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

17. Regional Comparison - Bangladesh
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
Presented By: Shoaib Lalani
71,000

18. Regional Comparison - India
• Government perspective
• 3.14% service fee
• Reserve Bank of India’s role
Presented By: Shoaib Lalani

19. Thank You!!!!
Presented By: Shoaib Lalani