Branchless banking after having a great start with microfinance and commercial banks has now started making its way to government social safety net programmes.
With branchless banking services in the ascendant, the launch of Benazir Mobile Banking would further strengthen and expand the scope of branchless banking in Pakistan as it is driven by Benazir Income Support Program (BISP) initiative to facilitate the government to public transactions, such as transfer of grants, using cost efficient technology. In this regard, BISP would distribute 150,000 free mobile phones to facilitate beneficiaries.
Initially, the service will only be available in just four districts, Larkana, Layyah, Musakhel and Batagram, as the project is in pilot phase, but it is expected soon to be rolled out to other rural areas and small cities.
Using this service, beneficiaries would not have to wait in long queues, while it will replace the present payment mechanism, which transfers money through money orders. This enhanced communication medium would also facilitate users to register complaints, while on the other hand, help BISP communicate with beneficiaries through text and voice massages.
Upgrading the payment system can considerably reduce transfer costs, to both government and beneficiaries. Besides, this unique way of banking will not only expand outreach to underserved areas but would also help reduce corruption and fraud as it ensures transfer of funds directly to the needy.
Once the system is developed, the government would be able to transfer other public payments, such as pensions and wages to public employees, and delivery of various public services, such as warnings regarding natural disasters, price lists of various commodities, healthcare and farming advisory.,
The fact that more than 60 percent of the population owns mobile phones, the government programme should be the priority as it will provide more avenues to reach citizens in a much better, faster and effective way.
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