Banking in Pakistan

Understanding the Basics

Traditional Banks Mobile Users Mobile Banking

• Banking Model • No of Mobile Users • Banking for the

Unbanked
• Gaps in the Model • Mobile Penetration.
• User-friendly
• Banked percentage Technology
of the Population
• Reducing Expenses

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 Banking Model: Simplified

• State Bank of Pakistan is the Central bank of the country and its head office is
at Islamabad.
• It has offices at Karachi, Hyderabad, Sukkur, Rawalpindi, Lahore, Faisalabad,
Central Gujranwala, Sialkot , Multan ,Peshawar and Quetta.
Banking

• It is the most effective mobilizer of savings and provides short term

requirements of working capital to trade, commerce and industry.
• National Bank of Pakistan , Habib Bank Limited, United Bank Limited, Muslim
Commercial Bank Limited ,Allied Bank of Pakistan Limited are the five
Commercial commercial banks in the country.
Banking

• It comprises of 18 foreign banks with 64 branches which are located at Karachi

and other commercial cities.
• It is engaged in financing foreign trade and is authorized to perform normal
Exchange banking functions .
Banking

Source: Wikipedia
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 Banking Model: Simplified

• Post Office Savings Bank is the only Savings Bank in the country.
• It is controlled by the Government of Pakistan.
• It accepts deposits from the public and invests them in various
Savings Banks Government projects.

• There are 3 systems of cooperative banking in Pakistan.

• They consist of primary cooperative societies at the base; Central
Cooperative Banks and Banking Unions in the middle and Provincial
Co-operative Cooperative Banks at the top.
Banks

Source: Wikipedia
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 Unbanked Pakistan

• 85% of the Pakistani adult population are

financially excluded and do not use either
formal or informal financial products.

• 11% of the adult population are formally

banked, but almost a quarter of these people
withdraw funds immediately.

• 32% of the adult population use other formal

products such as insurance, leasing or
microfinance.
An average Pakistani
farmer has no means of saving

Source: Finscope
Pakistan Today

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 Mobile Connectivity

• Total Subscribers: 107 million

• Annual growth rate: 4%

• Population Penetration: 64%

Pakistan has the highest mobile penetration

rate in the South Asian region.

Source: Budde
 • Mobile phone subscriptions in Pakistan is 112
million whereas only 25 million people –
mostly from high income group have bank
accounts

• Which means 22% of the country’s population

owns bank accounts, while more than 60%
have access to mobile phones

Source: Tribune

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 Mobile Banking: The Solution

There exists a comprehensible window of

facilitation between the 25 million bank
account holders versus the 112 million
mobile subscribers.

Five mobile phone companies have brought

the entire country under comprehensive
network coverage.

SBP has now issued four branchless

banking licenses and there are two services
which are operational in the market at
scale.

Source: MIFA
 Mobile Banking: The Solution

Insufficient funding to increase outreach. All

banks have limited access to capital.

Lack of diverse products and services for

every section of the society

Duplication of efforts by non-governmental

stakeholders (e.g., SBP credit bureau,
wholesale funds)

Source: MIFA
 Bringing it all Together

Consumer Linkages
• Universal • Eco-system approach
• Ubiquitous • Direct integrations
• UI • Inter-operable

Platform
• High Performing
GTM
• Efficient
• Investment in branding, distribution
• Global
and operations
• Strategic partnerships
• Appetite to stay the course

Mass Market Offerings Drive Volume/Profitability Create Largest/Network Effect

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