State Bank aims to increase bank accounts to 100 million by 2020
PHOTO: EXPRESS
“Next level of economic advancement cannot take place if this side (digitalisation of the economy) is ignored,” Zubair emphasised while addressing the 11th International Mobile Commerce Conference 2018.
Pakistan has successfully deployed 3G/4G mobile internet infrastructure over the past four years. Four cellular services companies are operating in the country which is the key to digitalisation of the economy. The country is also planning to test the fastest 5G technology.
More than half of Pakistan’s population is using mobile phones as the country has 120 million active SIMs. One-fourth of the population - 50 million - is using smartphones which are 3G/4G compatible. Zubair, who is also a key member of the federal government’s economic team, said the technology in place was about to get people living in rural areas involved in the economic growth process.
“Technology is going to reduce the gap between rich and poor and narrow down rural-urban divide and that will be the real economic growth,” he remarked. “Public and private sectors must work together for the national cause (digital economy).”
State Bank of Pakistan (SBP) Executive Director Development and Finance Group Syed Samar Hasnain said the central bank was making sure that all the required resources, including financial resources, remained available for mobile commerce and digitalisation-driven economic growth.
He pointed out that the number of branchless banking accounts had grown over 21% to 33 million in the July-September 2017 quarter compared with 27 million in the previous April-June quarter.
SBP Executive Director Banking Policy and Regulations Group Syed Irfan Ali said the central bank had targeted to increase the number of bank accounts to 100 million by 2020.
“Branchless banking will provide much-needed support in achieving the goal of financial inclusion under the SBP’s National Financial Inclusion Strategy 2015,” he said.
Planet N Group of Companies Founder and Coach Nadeem Hussain pointed out that a large amount of currency remained outside of the banking system and fintechs could bring that into the system and help document the economy.
“Printed currency notes worth Rs3 trillion are in no bank account,” he estimated, adding Ant Financial, which is part of Chinese e-commerce giant the Alibaba Group, was going to revolutionise digital economy in Pakistan.
Published in The Express Tribune, March 16th, 2018.
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