Value of e-banking transactions registers quarterly growth of 28pc

KARACHI: Digital banking channels processed 186.7 million transactions worth Rs11.7 trillion in Oct-December 2017, according to data released by the State Bank of Pakistan (SBP) on Monday.

The number and value of the transactions processed in the second quarter of 2017-18 were up by 8.6 per cent and 28 per cent from the preceding quarter, respectively.

Major channels of digital banking, also known as e-banking, include real-time online branches (RTOBs), auto teller machines (ATMs), point-of-sale (POS) machines, mobile phone banking, internet banking, call centres/interactive voice response (IVR) banking and e-commerce.

RTOBs processed 41.7 million transactions amounting to Rs9.8 trillion. Out of these transactions, online cash deposit transactions had the highest share of 47 per cent, with a value share of 19.6 per cent. In contrast, the share of real-time online intra-banks fund transfers was 32.3 per cent in volume and 73.2 per cent in value. Online cash withdrawals contributed 21 per cent and 7.2 per cent share in volume and value of transactions, respectively.

The total number of ATMs installed by 32 banks in the country was 13,409 at the end of December, up from 12,963 from three months ago, which shows a quarterly growth of 3.4 per cent. Out of these ATMs, 10,933 or 81.5 per cent are installed at bank branches. These ATMs processed 115.3 million transactions worth Rs1.35 trillion in the quarter. Cash withdrawals contributed to the majority of ATM transactions in terms of both volume (95 per cent) and value (87 per cent). The rest of the transactions pertained to intra- and inter-bank fund transfers, utility bill payments, cash/instrument deposit transactions, et cetera.

The average size of a single ATM transaction was Rs11, 729.

Mobile phone/app-based banking is being offered by 18 commercial and microfinance banks to a total of 2.7 million registered users. The segment processed five million transactions amounting to Rs91.7 billion during the quarter under review. The overall volume of call centres/IVR banking has reduced due to a rapid increase in internet and mobile phone banking. During the quarter under review, about 77,000 transactions amounting to Rs2.4 million were processed by call centres/IVR banking, SBP data revealed.

As many as 117.6 million transactions of Rs40.3 trillion were carried out using paper-based instruments i.e. over-the-counter cash deposits, cheques, pay orders, demand drafts, et cetera. These transactions showed a quarterly decline of one per cent in the volume of transactions. However, they showed an increase of 7.9 per cent in the value of transactions over the previous quarter. The average value of paper-based transaction has increased 7.7 per cent, which shows that people prefer e-banking channels for small transactions.

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