Branchless Banking Growing Very Fast In Pakistan

A report published by the CGAP, many of the players are gradually offering the branchless banking in Pakistan as it is a favorable business model, State Bank is also having a new accurate approach for branchless banking.

It is stated by the CGPA that in the developing markets of branchless banking Pakistan is the fastest country in the world.

Government Supporting Mobile Banking Idea

According to the internal sources SBP issued licenses for four branchless banking and in a view of taking consideration of many others. Nowadays the government is planning to encourage more companies towards the use of mobile banking and as well as having a future plan to distribute the government payments through branchless banking.

In the meanwhile there are only two operators of branchless banking in the market and several others are expected to jump in it in a couple of years.

EasyPaisa By Telenor

Tamer micro finance and its parent company Telenor having a joint venture (easypaisa) are currently having over a half million mobile accounts. Round about Rs. 43 billion (US $500million) of domestic money transfers and processed bills through easypaisa have been done.

Branchless Banking By UBL

The other branchless banking service which was launched in April 2010 is by UBL. The service is named as UBL Omni, and it is going very well in market and is winning several contracts of government and non government organizations for paying of payments.

UBL is having 2 million recipients country wide and 5000 agents by now. Now some of the other players in the meanwhile are trying to enter in the branchless banking markets which mainly include Mobilink (Waseela), TCS, Bank Alfalah, Askari Bank and MCB.

According to the CGPA, in Pakistan’s banking sector the next 12 months are very difficult for the newly emerging branchless banking. The developing process of this sector will give important lessons for the rest of the world.