KARACHI – The State Bank of Pakistan and Pakistan Telecommunication have devised a draft for “Digital Bank” in the country to further deepen the branchless trading which already making new heights and provide comfort to common man to be closed with banking norms.
The State Bank of Pakistan is currently developing the regulatory framework for the ‘Digital Bank’ which will operate through internet only, without having any physical presence.
This will allow the customers to do all sorts of financial transactions while staying online through website or mobile apps. Another important development is the interconnection between the branchless banking service providers, banks and mobile operators.
The Government (PTA and SBP) introduced a Third Party Service Provider (TPSP) model where banks and operators could amalgamate their resources and provide mobile financial services. The private sector is also rolling out new ventures and collaborations to make the best use of the rising digital economy in Pakistan. Apart from launching the ‘digital only’ branches by major banks, the first Digital Saving Centre has also been launched by a (3) mutual funds company recently.
The government has also launched the National Financial Inclusion Strategy (NFIS) which aims to enhance formal financial access to the adult (2) population in far flung areas.
The main objectives of NFIS for the year 2020 are: increase the number of adults with a formal account (bank account or mobile wallet account) to 50 percent, increase the number of female adults with a formal account to 25 percent, increase the percentage of adults living within 5 kilometers of an access point and increase the percentage of savers that have used a formal financial service to save to 10 percent.