Branchless banking accounts grow by 14%

KARACHI: The branchless banking in the country grew by 14 percent during the first quarter (January to March) of 2013 and by the end of the quarter, branchless banking accounts have touched 2.4 million.  

According to State Bank of Pakistan’s latest branchless banking newsletter, branchless banking deposits have grown by 32 percent and reached Rs 1.4 billion. The growth is mainly attributed to level ‘0’ and level ‘3’ accounts, which grew by 33 percent and 56 percent, respectively.

The total volume and value of transactions processed during the quarter have jumped by 16 percent to 41.1 million and by 13 percent to Rs.171 billion, respectively. 

This growth in transactions is largely attributable to early branchless banking players (Easypaisa and Omni). The average size of transaction is Rs 4,150, while the average number of daily transactions has increased to 457,000 from 392,433.

The fast growing network of branchless banking agents has reached to 64,716 as of March 31, 2013 from 41,567 as on December 31, 2012 registering an increase of 56 percent. This growth in agents’ network is largely owed to new players (Mobicash and Timepey).

According to the SBP, domestic fund transfers through OTC (P2P) remains the dominant category with 59 percent share in value and 36 percent in number of transactions performed by the customers. Growth in m-wallets has been driven by G2P accounts as 75 percent of the total 295,138 accounts registered during the quarter belong to G2P beneficiaries. G2P welfare payments worth of Rs 5.5 billion have been disbursed through branchless banking channels during the quarter. Moreover, Rs 346 million have also been disbursed to Employees’ Old-Age Benefit Institution’s pensioners through agents.

The growth in number of transactions and accounts is mainly attributable to early providers (Easypaisa and Omni).

A prominent growth was also witnessed in the number of agents, which grew by 56 percent, thus increasing the total network to 64,716. This growth is largely owed to two new providers (Mobicash and Timepey).

The growth expectation in coming quarters is fairly high as the new players start getting their pace. 

A total of 41.1 million transactions valued Rs 171 billion were performed during the quarter under review.

A quarterly growth of 16 percent in number of transaction and 13 percent in value of transaction has been observed during the current quarter.

In terms of transaction-mix, agents have performed 1.4 million transactions worth of Rs 72.5 billion for liquidity management purpose.

On the other hand, customers (either registered or unregistered) have performed 39.7 million transactions worth of Rs 98.2 billion during the current quarter.

For customers’ transactions, domestic fund transfers through OTC (P2P) remains the dominant category with 59 percent share in value and 36 percent in number of transactions with average size of Rs 4,111 per transfer.

Customers have also transferred funds from their m-wallet accounts but it has accounted for only 2.0 percent in value and 1 percent in number of total customers‘ transactions.

Bill payments and top - ups is the second largest category with 17% share in value and 48 percent in number of transactions.

Cash deposits and withdrawals from m-wallet accounts collectively form the third largest category with 14 percent share in value and 11 percent share in number of customers‘ transactions.

The withdrawal transactions are mostly done by G2P beneficiaries to collect their funds or pensions. Around Rs 6 billion has been disbursed through BB channels under G2P welfare and other bulk payments category which accounted for 6.0 percent of total value transacted, the SBP said. Source Daily Times