Smartphone to Revolutionize Digital Banking Industry by 2020

Nadeem Hussain, President, Tameer Bank revealed that the customer base of branchless banking would become greater than the conventional banks in the next five years as mobile accounts are projected to reach 50 million by 2020.

Smartphone to Revolutionize Digital Banking Industry by 2020

Talking at the ‘Pakistan Payment Summit-2015’, arranged by the Total Communications, in association with the State Bank of Pakistan and 1-Link, Nadeem Hussain further indicated that a fund of Rs 100 million has been generated for two preliminary projects for projection of digitalised banking industry.

“Smartphone will make it happen, as their prices have decreased to Rs5000 to Rs6000 in Pakistan.”

He said.

The technology-driven mobile banking would support fetching transactions worth Rs 3.2 trillion into the banking system from outside the system. This will also enable document the undocumented economy, Hussain said. He further indicated that mobile banks are also working on the project of appealing transfers into the country from Pakistanis living overseas.

“At present, a person living abroad faces five levels of intervention to send money home via conventional banking system. The mobile banks would do it in just one-step and help attract larger remittances.”

Nadeem Hussain said.

Tashfeen Khalid Niaz, Chairman, Sindh Revenue Board, said they have digitalised and automated the tax-paying system completely to assist taxpayers.

“Taxpayers can pay taxes via ATM, mobile phone, and computer system now.”

He said.

Foreign presenters from different parts of the world also addressed the congregation. KC Wong at Insite MY System, Malaysia, insisted bankers to update cheques to assist their customers.

“Banks should add a line on bottom of cheques to offer option to customer whether they want to make the transaction through digital system…It normally takes three to five days to clear a cheque through conventional system.”

He said.

He commended the central bank to modify related laws to accelerate cheque clearing system.

Sanjiv Purushotham, Senior Business Leader, Business Expansion, Non-Traditional Business in the Middle East and Africa, Mastercard, told that they have elevated their technology with the passage of time. The company has started its journey with introduction of plastic money and has shifted to digital transaction where a card is no more needed.

CEO ,TPS, Shahzad Shahid, informed that the share of debit cards into all plastic cards stands at 93% in Pakistan. He said there are 37.8 million bank accounts in the country, 25 million debit cards, which have increased from 9.5 million in 2011.

Also Read: Mobile Financial Services has Huge Growth Potential for Pakistan: VP Telenor