KARACHI: The State Bank of Pakistan (SBP) has asked conventional banks to re-design their future strategy to remain in the business, as outpaced progress by branchless banking is challenging them.
"You (conventional banks) need to re-make your future strategy very quickly," Syed Irfan Ali, Executive Director, State Bank of Pakistan, said on Thursday.
He was speaking at the second Pakistan Payment Summit, 2016, jointly organized by Total Communications, State Bank of Pakistan and 1Link, the organizers of the event said in a statement.
Ifran Ali said that number of physical branches would cross 15,000 mark this year.
In comparison with them the number of branchless banking agents has crossed 400,000 mark.
According to the central bank there are some 35 commercial banks, including 7-8 Islamic banks. Besides, nine banks in collaboration with mobile phone service providing firms are offering branchless banking services in Pakistan.
Ali said that the need for ATM machines in the country is almost four times higher than the existing number of machines in place. "There are 11,000 ATM machines at present. We need some 40,000 the machines in the country," he said.
He said the SBP has challenged itself to provide access of banking services to 50 percent adult population of the country by 2020. The digital payment system is helping greatly for the financial inclusion.
The SBP remains in constant collaboration with Pakistan Telecommunication Authority to support growth in digital payment system. It also remains in touch with ministries of commerce, finance and IT in this regard, he said.
Qasif Shahid, Founder and CEO-FinJa, said that many developed countries have transformed from cash-heavy societies to cashless societies, including Norway, Sweden, Scandinavia and Australia.
Pakistan is in the middle of this trajectory. It is moving on fast pace from analog to digital payment system. "It is moving from cash-heavy to cash slide society now. It will later transform into a cash less society," he said.
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