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Branchless Banking in Pakistan: A Laboratory for Innovation

Highlighting challenges and opportunities for branchless banking in Pakistan

This brief discusses existing and anticipated businesses and the key challenges and opportunities that are likely to shape Pakistan’s branchless banking market over the next twelve months. Pakistan is one of the fastest developing markets for branchless banking in the world. Clear regulations and a regulator that is willing to listen to the private sector and provide incentives for innovation have promoted a dynamic branchless banking sector.

A variety of business models is emerging that involves a wide range of players, including mobile network operators and technology companies. The government is encouraging innovation by piloting the use of branchless banking to distribute government payments. These promising experiments may fail at small scale unless providers can overcome challenges that include:

  • Building customer confidence;
  • Reaching commercial viability;
  • Preventing fraud and abuse.

There are a number of reasons to be optimistic that the sector will continue to grow. The State Bank of Pakistan has shown that it is committed to making branchless banking in Pakistan commercially viable. There is also great market potential. Early customer adoption and use rates suggest that customers value and are willing to pay for branchless banking services.

About this Publication

By Bold, C.
Published