Branchless banking accounts stand at 5.4 million

KARACHI: Deputy Governor State Bank of Pakistan (SBP) Riaz Riazuddin said on Thursday branchless banking accounts surged to 5.4 million, which indicates that usage of and consumer confidence on the digital channel is increasing day by day.
“With the SBP’s facilitative role and enthusiastic approach of branchless banking players, the number of mobile wallet is expected to reach more than 45 million in the next three years from 5.2 million in December 2014,” Riazuddin said, speaking at the 13th e-banking conference and exhibition organised by Total Communications and 1Link.
Introduction of biometric technology in account opening has made the process real-time, accurate, hassle-free and paperless, he said. “This will serve as a security and tracking mechanism to identify the remitter and receiver of funds, discouraging the occurrences of funds transfer for illegal and criminal activities.” He predicted that the number of biometric devices would rise to 62,000 by the end of this year.
Deputy Governor further said the alternate payment delivery channels, like e-banking and branchless banking have emerged as supporting pillars of SBP’s vision for financial inclusion. “Creating digitally inclusive financial system will ensure reaching un-served and underserved population for meeting their financial needs.”
Naveed Ali Baig, chief executive officer at Innovative Private Limited said recent regulations related to payment system operators and payment services providers has paved the way for new entrants in the electronic payment industry: clearing house, auto teller machine switch, point of sales gateway and so on.
Faisal Ejaz Khan, chief executive officer at 1Link said they will soon launch a mobile app to enable debit cardholders to make payments through smart phones.
“(This) POS (point of sale) app would help swapping debit cards through smart phones,” Khan said. “We are just waiting for the approval from regulators (SBP) as after the introduction of that app over seven million debit cards in Pakistan would automatically turn to POS cards.”
He said 1Link will also launch “direct debit” app in the next three months.
This will enable banks to directly debit payments from bank accounts for payment of utility bills, school and university fees and for monthly installments of cars and houses. These services will be activated on the request of accountholders.
Faiq Sadiq, Head Payment Services at Habib Bank Limited said his bank has deployed 5,000 point of sale terminals nationwide.
Mahmood Kapurwala, chief executive officer at Avanza Solutions said technology has broken all sorts of barriers.
“Today, we see technology integrated with each and every aspect of our daily lives, be it the way we communicate and the way we commute or the way we save and the way we spend,” he said.
“Technology is everywhere. We strive to help our customers create such a connection with their consumers.”