Timepey to make a difference in branchless banking: Zong CEO

By Muhammad Yasir

KARACHI: Zong, in collaboration with Askari Bank, will make a difference in the branchless banking system by penetrating the untapped countrywide market particularly the rural areas at a very fast pace with its service Timepey.

This was stated by Zong CEO Fan Yun Jun in an exclusive interview to
Daily Times.

The branchless banking is emerging as a highly competitive industry as cellular operators along with partner banks have already are exploring the attractive market, and it is arduous task to penetrate in cutting-throat market with financial services.

We are not the first mover but we are confident to explore a big share in the available market and make our space with our services strength, Jun said.

Zong as a new operator entered into Pakistan telecom market in 2008 and now it has made its own market with rapid penetration among the masses, he said. Zong is the fastest growing network in the country due to its strategy based on quality of services, innovation in services and facilitation of customers.

The same strategy will be followed in the future in branchless banking business with collaboration of a strong bank and software technological partner Innov8, the Zong CEO said. The software technology and electronic receipt machines has been developed locally, which is secure, novice and reliable for customers.

Zong and Askari Bank’s partnership is unique because neither one of them acquired stakes but go side-by-side equally with their expertise and mutual benefit.

At present, there are 3,000 point of sales set up throughout the country that will be increased gradually particularly in small cities and rural areas with the aim to provide benefit to people having dire need of using banking services for immediate cash transfer.

The investment brought by CMPak has reached at $2 billion at present that will never be stopped as expansion in branchless banking and advancement in cellular phone services are continue.

Regarding 3G, he said that Zong was working aggressively on it and will take a first to offer to its customers.

The launch of 3G is late in Pakistan as compared with different countries but local market should be kept in view while opting for 3G or 4G services. We should understand the needs of the local market and their use of data, the affordability of customers and returns on investment.

The affordability of the customers regarding purchasing of smartphones is comparatively low in the region. It is standing hardly at 15 percent as compared with different countries of the regions like Hong Kong and Singapore where its percentages are recorded at more than 50 to 70 percent.

The introduction of 3G technology is the best option in the present scenario particularly in the industry, which is highly competitive on tariffs of services.

Zong is the subsidiary of China Mobile Communication Corporation (CMCC), the biggest telecom giant in the world and it will transfer the best available technology to Pakistan as well.

He mentioned that Prime Minister Raja Pervez Ashraf’s decision to continue sale of SIMs at franchises is laudable because they are our business partners and provided jobs to hundreds of thousands of people.

Published in Daily Times - 7 December 2012