KARACHI: Figures released by State Bank of Pakistan (SBP) for branchless banking transactions during July-September quarter of FY 2017-18 had fallen 1.47 percent in volume and 2.67 percent in value compared to April-June 2017 quarter.
This has been attributed to the agent adapting to SBP’s rules of biometric verification system for settling payments.
Total number of branchless banking transactions touched 164.7 million worth Rs726.4 billion were carried out in the above-mentioned quarter.
A branchless banking newsletter released by the central bank stated “SBP made it mandatory for the banks to conduct Person-to-Person transactions only through the Biometric Verification System (BVS) devices starting July 2017. Since the installation of BVS devices is still underway at a number of agent locations, this led to a decline in OTC transactions, thus exhibiting a downfall in overall BB transactions which declined 1.48% and 2.69% in volume and value respectively, from the preceding quarter.
The branchless banking agent network rose 17,397 during July-September 2017 quarter, with the aggregate number of shared agents touching 420,107. JazzCash, Meezan Upaisa, JS Bank, Omni, Easypaisa, HBL Express, PayMax and Mobile Paisa are among the entities operating the agent network.
Mobile wallet (m-wallet) transactions value increased 55.4 percent to Rs246.4 billion during 1st quarter of FY 2017-18, with transaction volume touching 104.8 million during this period.
The percentage of m-wallet transaction in overall customer-oriented transactions rose to 66 percent, indicating that m-wallet adoption was increasing thanks to OTC channel, SBP said.
As per SBP’s newsletter, during the first quarter of FY 2017-18 over 5.7 million new BB accounts were opened, which was the highest compared to all previous quarters.
“The rise in BB accounts is exhibiting a steeper trend since Jun-16 onwards, due to the enabling environment created by the SBP and vibrant role of BB players to facilitate account opening through biometric devices at agent locations as well as the remote mode,” SBP said.
“The cost reduction in customer verification from NADRA has also provided enough synergy to encourage the banks to attract the customers towards the branchless banking channel,” the central bank added.
SBP stated active accounts hover around 47 percent of the total BB accounts. The bank stressed for introduction of innovative and tailored-made products for various segments of society to increase activity in accounts but also convert cash-based payment streams into digital channel.
SBP has been trying to promote the BB channel for sending of home remittance facility to mobile-wallet account holders. BB channel has contributed immensely to the sending of foreign remittances, with remittances worth Rs1.7 billion in 2015 and Rs2.4 billion during 2016, whereas first three quarters of FY 2017-18 have recorded Rs1.6 billion of remittances.
By end of July-September quarter FY 2017-18, BB accounts were constituted of 25.6 million male and 7.6 million female accounts. Sindh took the major share of BB accounts among females, leading with 25 percent, followed in second position by Punjab, then KP and Gilgit Baltistan.
During the quarter, BB accounts exhibited 29 percent rise in female accounts against 19 percent in male accounts, which is a healthy indicator of gender inclusion.
Female BB accounts exhibited the highest rise in Punjab and other provinces experienced more growth in male accounts, than the former, said SBP.
