Pakistan Mobile Banking

Pakistan is the sixth most populous country in the world and has the second largest Muslim population in the world after Indonesia. The country is also listed among the "Next Eleven" economies. With a population of 175 million, a population growth of 2% and an average age of 21, this is a country with major economic growth potential (averaging almost 8% growth for the past five years). The country have almost a negligible Internet subscriber population (less than 200 000), yet 90 million mobile phone subscribers.

In addition to all of the above, a number of other factors make Pakistan an ideal market for the growth of mobile banking. These factors are the following:

• A well-developed and balanced guideline to the development of branchless banking by the Pakistan Central bank exist. This guideline was published pro-actively and is state-of-the-art regulations that will support mobile banking development well.
• A good mix of well-run local banks as well as international banks are present in Pakistan. Most banks have good management and are well funded. In an environment that is becoming more and more competitive, banks will be looking at ways to compete and develop unique selling points.
• The five mobile operators are innovative and aggressive. All of them are backed by strong international shareholders with access to good international practices as well as resources.
• A clear need exist with a large portion of the population dependent on international money remittances or running SMME businesses.
• Excellent (and sometimes unique) inter-bank settlement and clearing systems with a growing ATM and POS network.
  

I expect that major growth will be seen in the take-up of mobile banking in this country in the next eighteen months.