Pak mobile banking 60pc inexpensive: SBP

Updated at: 1225 PST, Saturday, April 17, 2010
KARACHI: Syed Salim Raza, Governor, State Bank of Pakistan Saturday said the mobile banking or using third-party sources take the banking costs down 30 percent at international level; while, these expenses are reduced 60 percent in Pakistan.

Addressing at the inaugural session of the Pakistan Branchless Banking Conference at SBP Learning Resource Centre, here, he said at least four billion people are not using the banking system in the world and a meager 12 percent people use banking sources in Pakistan.

The SBP governor said the branchless banking is hugely vital for the banking industry in Pakistan and the research has proved that mobile banking or using third-party sources slash the banking costs by 30 percent, adding in Pakistan these expenses would go down by 60 percent.

Three-tier banking is being operated in Pakistan, i.e. mobile phone operators, large banks and retail micro-finance, he informed

The one-day conference, which is being organized by the State Bank in collaboration with UK Aid, in an attempt to highlight the existing branchless banking developments in Pakistan, showcase the state of industry preparedness and catalyze the investments and product innovation.

Salim Raza said in his keynote address at the conference on the ‘Need for Alternative Delivery Channels in Improving Access to Finance’ that Pakistan is the only country in South Asia to have issued guidelines for branchless banking.

Leading international and local experts and practitioners on Branchless Banking including technology experts from the World Bank’s Consultative Group to Assist the Poor (CGAP) are at the conference as speakers and panelists.

At least 250 participants primarily from the banking sector, mobile operators, technology companies, agent networks, regulators, government and donors, are attending the Conference.