Branchless banking (BB) is a distribution strategy employed by banks to improve and enhance delivery of financial services to clients without relying on bank branches. Branchless banking technologies include internet banking, automated teller machines, mobile phones and POS devices.
The average daily branchless banking transactions increased to 280,798 in the third quarter of fiscal 2012 against 228,858 transactions made in the previous quarter, says a State Bank of Pakistan statement issued on Thursday.
Growth expectations for branchless banking in Pakistan are fairly high, as one of the largest financial brands of the country is in the process of up-grading its technology for account opening, after which it will start registration of customers for Level Zero Accounts (whose per month transactions limit is Rs25,000). “This is expected to bring the lower income segments of society into the financial services loop,” adds the note. While Telenor Easypaisa, Askari Bank, United Bank Limited’s Omni service and Habib Bank are already key players in the segment, other banks are also likely to start their own BB operations soon.
Published in The Express Tribune, June 29th, 2012.
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