Two heads are better than one. And recent developments in the rolling out of technology-driven commercial products and services in Pakistan - primarily telecommunication services-commerce, alternative banking channels and other ancillary affairs - set a perfect example of this adage.
Since input from various industries is vital to develop these complex products, conferences and seminars that attract experts from the government sector, regulatory bodies, telecos, banks, and technical service industry and aid agencies, have proved fruitful. These conferences also attract a wide range of international guests who share their experiences, successes and failures.
The central banks upcoming two-day conference, funded under the Financial Inclusion Programme of UKs Department for International Development (DFID), on branchless banking, due to begin on Monday, is another one of its many steps in that direction.
The theme of the conference will be to explore ways and means to come up with an efficient Government-to-Persons (G2P) Payment model. Leading international expert on the branchless banking Mr David Porteous of the Bankable Frontier Associates will steer the policy and investment dialogue at the conference.
The conference, as has been the case previously, is expected to shape the future of branchless banking in Pakistan, by providing a platform for the private sector to bring regulators and policy makers to the table.
This moot between public and private sector participants can lead to further clarity in decision making and celerity in getting approvals of policies and product launches, as the former possesses authority and the latter efficiency.
It is also of interest to financial institutions as the development of low-cost alternative banking channels can foster financial deepening and open new business avenues for banks and telecos. On the other hand, it facilitates the government in public transactions, such as transfer of salaries, welfare grants, pensions and wages to public employees, using cost-efficient technology
"Branchless banking is the cheapest form of distributing aid. For any aid agency, the cost of delivering aid to the needy is something around 15-30 percent. On the other hand, the cost of delivering aid through these cards is less than 5 percent, whereas in the case of IDPs, it was less than 1.5 percent. The cost of the Watan Card is around 3 percent," Atif Bokhari, President and CEO, United Bank Limited, said in an interview with BR Research in December 2010.
Events like these, therefore, also draw a lot of interest from aid agencies that have shown great zeal in promoting branchless banking products, because it provides a transparent and cost-efficient channel for delivery of financial services to the poor.
In recent months, branchless banking services providers, such as Easy Paisa and UBL Omni, have received grants from The Bill & Melinda Gates Foundation. The DFID is another such organisation that is playing a pivotal role in the development of branchless banking in Pakistan.
DFIDs Financial Innovation Challenge Fund, due to be launched at SBPs conference next week, is linked to the whole development story. The fund is a part of DFIDs Financial Inclusion Programme under which it will provide £10 million in funding new innovative proposals and schemes that can promote financial inclusion and deepening.
Although, historically, Pakistani commercial banks have shown an allergy to innovation, it is hoped that many new exciting products and services will result from the upcoming conference, and the launch of the DFID fund.