More Pakistanis will soon have access to financial services, thanks to the expansion of branchless banking. Dubai Islamic Bank Pakistan (DIBP) has recently announced that it will introduce branchless banking by June 2018. This will help the State Bank Of Pakistan achieve their target of increasing Islamic bank’s market share to 20% by 2020. Currently, Islamic banks have 14% of the market share while conventional banks hold the rest.
In Pakistan, nine conventional banks and financial institutions already have branchless banking services. Those banks have collaborated with mobile phone services, making branchless banking possible. More and more institutions throughout the world are now utilising some form of branchless banking, so it only makes sense that DIBP is participating as well.
The platform being rolled out will enable bank account holders to conduct financial transactions through their phone. Account holders could even do something as simple as purchase groceries just with a phone. It’s not just for smartphones either, even simple feature cell phones will be able to conduct financial transactions.
People who may not have physical access to a bank will now be able to access financial institutions. While not everyone lives in proximity to a bank, most people have some type of cell phone. According to the Pakistan Telecommunication Authority, there are a total of 145 million active cell phone users. 67% of those users have a simple feature cell phone whereas the rest are using a smartphone.
“We are bringing matured market experience into Pakistan. Pakistan only has six banks in total,” said Ghazanfar Ali Khan, CEO and Zing Digital Commerce founder. With branchless banking making its way into Pakistan, more people will have access to safe financial institutions. Anybody with a mobile phone will be able to bank. This is a huge step forward in terms of inclusive banking.
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