Role of Mobile Banking in Pakistan an overview of Mobile Banking Products in Pakistan

7/29/2019 Role of Mobile Banking in Pakistan an overview of Mobile Banking Products in Pakistan

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Mobile Banking & Pakistan IBP 2013

Submitted By Saad Bin Mehmood Page 1

Assignment

The Institute Of Bankers Pakistan

Topic

The Role of Mobile Banking In Pakistan

(An Overview of Mobile Banking Products in Pakistan)

Author

Saad Bin Mehmood

MBA (Banking &Finance)Batch No: 2011

Submitted To:

Mr. Kamran Ahmed Khan

Officer in Charge

Institute of Bankers

(Provincial centre Peshawar)


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Acknowledgment

As the Author of this Project first of all I would like Thanks to my dear Allah who granted me

enough power, knowledge and motivation to write this working paper. I would also love to

thanks to my respectable and loving parents who are always here to support me. I would also

give my special thanks to Mr. Kamran Ahmed Khan, Officer In Charge, Institute of Bankers,

(provincial centre Peshawar) to grant me an opportunity to start this project and helped me out

in different phases to complete it. I would always thanks to friends and fellows to encourage me

during my struggle


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Preface

Economy is the key of success in present modern world which is always based on strong pillars

of financial services. Banking sector is the major hub of finance hence an essential for a

prosperous economy this working paper explains the Role of Mobile Banking In Pakistan. It

Provides an Overview of Various Mobile Banking Products that are Operating in Pakistans

Market. This document will help the students and other learners to educate them about the

various Mobile Banking Products, Their Background, effects, and other detailed information of

mobile banking products in the markets of Pakistan.


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Executive Summary

Mobile Banking is not only one the most leading and successful product but it is also an essential

for the growth of any developing country especially.

Initially this Paper explains the significant of Mobile Banking in todays Economy. It explains

the level of importance of mobile banking for the economy of developing countries as well as for

the soundness of financial institutions and telecom companies. It through the light on various

aspects and clearly indicates that in future Mobile banking will be a product that will provide a

gradual boost to the economy.

The Document than Explain the Role of Mobile banking in the context of Pakistan and tried to

project how mobile banking will help to create new job opportunities and how it will be very

helpful for Businesses and various types of not only financial inclusion services but also social

services as well.

This paper also briefly discusses almost all current and upcoming mobile banking products that

are launched and will be launch in Pakistan. The paper also discuss the details about mobile

banking products and also analyzed the prices of two most successful and pioneer products of

mobile banking that are launched successfully in Pakistan

The paper concludes that which product is available on cheap prices. Last but not the least it

will not wrong to conclude that Mobile Banking is another name for the future of any successful

economy in present world.


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Contents1. Introduction:.......................................................................................................................................... 7

2. Literature Review: ................................................................................................................................ 8

3. Background of Mobile Banking:........................................................................................................... 9

4. Mobile Banking in Pakistan: ............................................................................................................... 10

I. One to One Model:.......................................................................................................................... 10

II. One to many Model: ....................................................................................................................... 11

III. Many to Many Model: ................................................................................................................ 11

5. Effects of Mobile Banking in Pakistan: .............................................................................................. 11

I. Mobile Banking & New Employment Generation: ........................................................................ 12

II. Mobile Banking & Tax Earnings Growth:...................................................................................... 13

III. Mobile Banking As a Tools for Government:............................................................................. 13

IV. Mobile Banking & its effect on Firms, Merchants, and Middlemen: ......................................... 14

V. Effect of Mobile Banking on Society: ............................................................................................ 15

6. Mobile Banking Products in Pakistan:................................................................................................ 15

I. Easy Pesa: ....................................................................................................................................... 15

a. Mobile Account services:............................................................................................................ 16

b. Easypaisa Money Transfer:......................................................................................................... 16

c. Bill Payments: ............................................................................................................................. 16

d. Other Services:............................................................................................................................ 17

II. UBL OMNI: .................................................................................................................................... 17

a. Account Opening: ....................................................................................................................... 17

b. Money Transfer:.......................................................................................................................... 18

c. Bill Payments: ............................................................................................................................. 18

d. Other Services:............................................................................................................................ 18

III. UPayments: ................................................................................................................................. 18

IV. MCB Mobile Banking: ............................................................................................................... 19

a. Balance Inquiry: .......................................................................................................................... 20

b. Mini Statements: ......................................................................................................................... 20

c. Funds Transfer: ........................................................................................................................... 21

d. Utility Bill Payments: ................................................................................................................. 21

e. MCB Visa Credit Card Bills Payment: ....................................................................................... 22


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f. Maintain Favorites: ..................................................................................................................... 22

g. Report a Lost ATM card: ............................................................................................................ 22

h. Other Services:............................................................................................................................ 22

i. How to register:........................................................................................................................... 23

7. Comparison among Major Mobile Banking Products In Pakistan:..................................................... 24

8. Upcoming Mobile Banking Products in Pakistan: .............................................................................. 25

9. Price Comparison Analysis between UBL Omni & Telenore Easy Paisa: ......................................... 26

10. SWOT Analysis: ............................................................................................................................. 27

I. Strengths: ........................................................................................................................................ 28

II. Weaknesses:.................................................................................................................................... 28

III. Opportunities: ............................................................................................................................. 29

IV. Threats: ....................................................................................................................................... 30

11. Conclusion: ..................................................................................................................................... 30

12. References:...................................................................................................................................... 33


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1. Introduction:In 21

stcentury, the sole objective of Businesses is to provide convenience and ease to their

customers to meet their main objective, i-e Maximization of the Profit. Man has invented and

developed so many products which have made his life easy and facilitated. It is Technology that

is alleviating the standard of lives of the People among the nations.

Even the economic growth of the country is also dependent heavily on the technology. So we use

thousands of electronics devices in our daily life. One of these Devices is a Mobile phone. We

use Mobile phone mainly for Communication purpose but now in recent few years this device

has developed in very broad and positive way, and this is the reason that now this device is one

of the most usable device in the entire world. More than 60% of worlds Population uses Mobile

Phone on daily basis. This frequent use of the mobile has opened new doors for the next

generation businesses for example every day thousands of Mobile phone applications are

developing that are use by users for lots of purposes. So it wont be wrong if we say that mobile

phone has provided a new shape to not only businesses but economy as well.

When we say that the mobile phone is very effective for the growth of a healthy economy, then

numbers of questions arise in our mind that how is it possible? Or how a minor device can put an

effective impact over economy of a country? The answer of all these questions is very clear if

one can observe how a mobile phone device can help in the growth of financial system of a

country.


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Although there are number of other platforms that are now using by financial institutions to

provide their services to their customers on their finger tips for example Online banking or

internet banking is one of those tools that are use by financial institutions to facilitate their

customers but internet service cannot be use from everywhere now and the devices other than

mobile phone that are use for this purpose are not easily portable. Though this service can also be

use by a single Mobile phone that a person can easily carry in his pocket. Due to high level of

Market potential and Mobile phones positive interaction with financial systems the numbers of

innovative products are launching in market related with mobile phones. One of these innovative

products that is developed in past few years and which is still in its development phase is

Mobile Banking.

2. Literature Review:Poverty is the root problem of almost of any type of economy. Today almost every country is

working to know the Procedures, policies and ways to overcome this major issue. Specially in

developing countries it is concern broadly with the economic condition of people as the people

who earn less than one dollar a day are comes under the line of poverty so one of the biggest

factor which contributes in the increase of poverty is lack of financial availability which further

becomes the cause of weak economic condition (Bhavnani, Chiu, Janakiram & Silarszky ,2008).

Mostly the people who lives in rural areas are major victims of problem like poverty because as

the rural areas are usually remote areas so it becomes a difficult task to provide the financial

services in such areas so the people of rural areas are mostly not enable to prevail such services

like money transfer, savings etc which is again a cause of poverty (Diga, 2007).


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The increased use of mobile phone and other electronic services is very beneficial for the people

are are almost out from the range of financial institutions and are unable to avail the services of

mobile banking (Skuse & Cousins, 2007). There are many Pricing models by which we can

reduce the cost of services specially the services that are provided by the mobile phone devices

(Sey & Fellows, 2008).

By using a network of mobile phones the mobile financial services can be provided in rural areas

at low costs as its hard to develop the Financial institutions in such remote areas where people

even dont have much information about how to avail the financial services. According to Mr.

Jensen & Robert in 2007 the easy availability of handsets with basic features and emergence of

can be more flexible as compare to other telecommunication devices (Myhr & Nordstrm,2007).

Many Researchers have identified a link between mobile banking & economic growth in

advanced economies (Colecchia & Schreyer, 2002).The increased telecommunication services

further improved the information services and due to increase in information awareness is

developed in the society which is also beneficial for the people who live in the rural areas(Roller

& Waverman, 2001). The relationship mobile phone financial services is direct with the poverty

as if the mobile financial services are developed and a people who are living in sustainable areas

have got access to information share by such services like financial services this will be very

helpful to decrease the poverty (Roman & Colle, 2002).

3. Background of Mobile Banking:Reported by the GSM Association (GSMA), 13 million people in these countries now use mobile

banking services. An additional quick mobile banking achievement is the M-PESA program

introduced by Safaricom, a Vodafone partner, in Kenya in 2007. Currently, M-PESA is the most


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significant mobile banking service in the globe, providing 13 million customers in Kenya,

Tanzania, South Africa, and Afghanistan. Mobile banking services are also now functioning in

Uganda and Senegal. far more than 40 million folks now use mobile financial services globally.

4. Mobile Banking in Pakistan:In the developing country like Pakistan, the Mobile Banking is one of the most versatile product

that is effecting the economy of Pakistan very positively.In current situation there are two large

Mobile Banking services are working successfully in Pakistan i-e Easy Pesa and UBL Omni as

stated by SBP. According to State Bank of Pakistan more than 800,000 accounts have been

opened in Branchless banking head from which almost every day more than 180,000 transactions

take place on daily basis with an average size of 3700RS per transaction (SBP-Statistics).

As Stated by the State Bank of Pakistan in their Branchless Banking Regulation there are three

types of Models that can be use for the development of mobile banking product.

These models are as follows:

I. One to One Model:In one to One Model the one Financial institution provides Mobile Banking services by the

establishing a collaboration with one particular telecom Company. Here the user of that

particular telecom company can only avail this service. The example of this service is Easy Pesa

in Pakistan which is currently working under the design of one to one Model according to

information given by Telenore Pakistan and Tameer Bank.


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One Bank One Telco

II. One to many Model:In One to Many Model one Bank or Financial institute provide mobile banking services by making

cooperation with many telecom companies. In Pakistan UBL OMNI is working on the same Model which

is making this product one of the most successful Mobile banking Product in Pakistan (SBP).

One Bank Many Telco

III. Many to Many Model:State Bank of Pakistan has also permitted many to many model for mobile banking as well but currently

there is no product has launched yet on the basis of this model. As in this Model many banks or Financial

Institutions provide mobile banking product by collaborating with many telecom companies (SBP)

5. Effects of Mobile Banking in Pakistan:Mobile banking decreases its client's dependency on cash, an aspect that delivers improved benefit andfinancial savings possibilities into Pakistani's lifestyles. Cash becomes unwanted for transferring or

acquiring money, which decreases the inherent threats of cash handling, such as loss, thievery, or

fraudulence. With middlemen squeezed out of the deal equation as a result of Mobile Banking, clients


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will experience improved transparency. All of these advantages give customers superior motive to

choose mobile banking. Pakistans poor confront two major challenges that financial services can assist

address. First, they seem to survive with a excessive level of earnings movements. Financial services can

assist erase their cash flow in various methods: by developing a buffer via savings; by raising inflow via

remittances; and by acquiring lump sums of money via savings and credit that can be utilized to control

significant expenditures as they arise. (B&G survey)

I. Mobile Banking & New Employment Generation:Enhanced accessibility to finance encourages businesses and new jobs. According to World

Bank study a 1 percent raise in financial inclusion refers to a 0.51 percent enhancement in

business enterprise creation, and a 15 percent inclusion raise brings to jobs expansion of 1

percent. By 2020, if Cellular economical services utilization via Cellular Financial Products will

increases the economical addition by 20 %, up to 600,000 new Businesses could be create,


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leading to 1 million new jobs an employment increase of 1.3 percent. This is the equivalent of

new jobs for 1 out of every 10 currently unemployed Pakistani.

II. Mobile Banking & Tax Earnings Growth:

The advantages of the economic growth triggered by financial services by means of Mobile

Banking will enhance tax earnings, as well. Corporate and business taxes will increase as a

outcome of new business generation together the Mobile financial Services value chain,

increasing profits within current companies thanks to savings from Mobile financial services and

business expansions made feasible by Mobile Banking. This business enhancement and creation

will produce new employment, which signify improved worker income taxes. Mobile banking

financial services could therefore add US$2 billion annually to Pakistans government revenues

by 2020 which means an increase of 3 percent.

III. Mobile Banking As a Tools for Government:Mobile financial services by Mobile Banking can provide a particular edge as an effective

payment tool for federal wellbeing. The present procedure includes paying by checks or cash,

and generating utilization of offline items of service. Such cash obligations and financial aids

added the administration with substantial costs and issues, such as probable delays, leakages, and

possibility of corruption by middle men. To open up personal bank accounts for recipients would

trigger these complications to decline. Mobile banking would deliver receivers with immediate

accessibility via electronic identity and mobile accounts. They would obtain their contentment

and subsidy payments instantaneously, at reduced cost, with no possibility of leakages. Like

Telenor Easypaisa and UBL Omni. Furthermore, mobile banking would motivate the growth of


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e-government services, benefitting both government and citizenry with a user-friendly system

that would assist in payments and ID solutions cost efficiently. Canada has executed this sort of a

program and has preserved US$9 per inhabitant on public services yearly, with high customer

achievement. In 2005, that nation launched mobile services meant to improve the delivery of

government plans and services to Canadians. The plan handles desires for Social Security

numbers and passport and credit apps, and it also disburses tax and social security payments. It

has supplied customers with a quicker and much easier way to admittance government services,

even those in non-urban and distant destinations.

IV. Mobile Banking & its effect on Firms, Merchants, and Middlemen:The usage of mobile financial services by Mobile banking can reduce admin expenses for firms.

A lot of companies, like utility companies, expend considerable time and money on the

operations and processing of paper bills. Including electronic invoices and reporting can

minimize expenditures and enhance velocity and reliability, lessening invalid costs for debts, for

instance. In addition, Mobile banking will improve transaction speeds and reduce outstanding

credit times, minimizing how long it takes to collect and find out after payments. A by-product

of firms diminished management responsibilities is an enhancement in the movement of clients

and income to over-the-counter Mobile banking providers. The merchants who acquire on these

jobs will benefit from the expanding revenue of financial services, greater income from the sales

of common goods,and an enhanced societal status as a outcome of their function. In Mobile

Banking some middlemen have been based on the transportation of money for remittances and

payments, and some have worked as money collectors for informal savings and credit systems.

Thus new chances will develop such as employment for official banking agents for those ready

to be properly trained and certified. A extensive chain of Easy paisa and Omni Agents in


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operating as a Middleman in Pakistan for offering mobile banking services to clients largely

transfer of remittances and obligations of bills.

V.

Effect of Mobile Banking on Society:

The usage of mobile financial services can assist & aid the accomplishment of Pakistans

sociable improvement objectives. The progress of the nation's technological facilities mobile

phone, Internet, and, thus, Financial Services via Mobile Banking will be at the origin of the

progression of outlying society, education, health care, gender equality, and transparency. As

these enhancements take place, human capital and economical growth will flourish, as will

upgrades in the equality of opportunity and income. Mobile banking can assist the growth that

brings to a better quality of lifestyle by means of a lot more equitable economic growth,

supporting Pakistan address some of the social goals of its Five-Year Plan (2010 to 2015) and

Vision 2030.

6. Mobile Banking Products in Pakistan:Following are some successful mobile banking products in Pakistan:

I. Easy Pesa:Easy Paisa is 1st Mobile Banking product that was launched in October 2009 in Pakistan.

Initially it had 2500 Outlets but now they are expanded to more than 12000 outlets throughout

the country. It is a joint product of Telenor and TameerMicro Finance Bank. The innovative

product Easy paisa under the umbrella of mobile banking is a most convenient and easy way to

transfer money across Pakistan and includes international remittance facility from more than 80

countries with collaboration withXpress Money. Furthermore an Easypaisa also provides a vast

field of banking services. The Easypaisa Mobile Banking structure is based on One to One

business Model.


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a. Mobile Account services:Telenor Easy Paisa is providing the following Services under the umbrella of Mobile Banking:

Money Transfer Bill Payment International Home Transfer Easy Load Donationsb. Easypaisa Money Transfer:

Easypaisa also provide Money transfer services through its More than 12000 outlets.Any person

with a need to send money from one city to another can use this service from any Easypaisa

shop. It is not necessary for the customer to be a Telenor subscriber in order to avail this service.

Some features of this service are given as follows:

Any person with a validNADRA CNIC can send money or receive money This service is not limited to Telenor subscribers; other mobile network subscribers can

also use this service

There is no paper work or form filling required An instant SMS message will be sent to both the Sender and the Receiver on

sending/receiving money

Sending/Receiving can be done from 12000+ of Easypaisa shops all over Pakistan No more waiting in long lines Money Transfer can be done even at late hoursc. Bill Payments:

Easypaisa Also providing bill payment services in Pakistan due to this amazing and convenient

facility anyone can pay Electricity, Gas, Telephone, Water and Internet bills in a very secure way

through any Easypaisa outlet without paying any extra charges.


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d. Other Services:Easypaisa also provide some other financial services as well to its customers for these services

are as follows:

Easy Load Easy Pay Donations

II. UBL OMNI:UBL Omni is Basically Branchless banking product but it also provides Mobile Banking

Facilities to its Customers. It is a product of United Bank private limited which is one of the

largest banks with 1200+ branches operating in Pakistan. In 2005 UBL launched its first Mobile

Banking product named as Mobile Wallet under the brand name of Orion. UBL Omni was

launched in Pakistan on 19th

April 2010. UBL Omni is providing the host of banking services to

customers nearest "Dukaan". These UBL Omni Dukaans are located in more than 650 Cities and

Towns in Pakistan. There are more than 6500 Retail agents of UBL Omni working in various

cities and towns. In current Market UBL Omni is the 2nd largest Brand that is providing various

mobile banking services to customers. UBL Omni is based on One to many Business Model.

a. Account Opening:UBL Omni Also Provides the Account opening services to its Customers. Any Customer who

wants to open his account can do so just by visiting any UBL Omni Dukaan. Omni Converts the

mobile number of Account opener in to his/her Account number and after opening an Omni

Account the customer can easily operate his/her account not only from a wide number of UBL

Omni Dukaan but also from any UBL Branch as well. A UBL Omni Account holder can enjoy

all the basic Banking services on his/her fingertips and perform transaction 24/7 from anywhere

in Pakistan.


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b. Money Transfer:UBL Omni is also providing Money transfer services to its customers which means that like

Easy paisa, anyone can transfer money immediately in all over the Pakistan. As UBL Omni is

still in its initial phase so currently money transfer services are limited to domestic remittances

only. Anyone can visit his/her nearby UBL Omni Dukaan with his/her original and a copy of

CNIC along with CNIC number of the recipient and send money instantly with complete peace

of mind backed by the financial security of UBL.

c. Bill Payments:UBL Omni also providing one of the most basic banking services to its customers through

Mobile phone, which has made their lives more easy and comfortable now , there is no need to

stand in queues and wait to submit utility bills and there is no need to submit utility bills in bank

working hours. Anyone can pay his/her utility bills including Electricity, Gas, Internet and even

Mobile services bills by visiting any nearby UBL Omni Dukaan without any extra charges. This

service is available for everyone.

d. Other Services:The Mobile Financial services that are offered by UBL Omni are as follows:

Purchase Mobile Voucher SMS Banking Services Donations

III. UPayments:Recently, Habib Bank Limited, Summit Bank and Ufone jointly started a mobile phone based

banking services to Ufone customers to have their bank accounts in HBL which can be operated

through mobile phones having Ufone. This Mobile Banking service is not as much wider as UBL


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Omni and Easypaisa are. The Business model of this Mobile Banking Product is based on One

to Many.

IV.

MCB Mobile Banking:

Another Mobile Banking Product that was launched in Pakistan by Muslim Commercial Bank in

June or July 2009 is MCB Mobile Banking. MCB Mobile Banking is very much like Online

banking through Mobile phone through GPRS Service. MCB has developed an entire GUI for its

Mobile Banking customers which can be operated by any internet enable Mobile phone. Its

Scope is bit narrow as it is available for only MCB ATM Card holders. MCB also wonMMT

Award(The Best Bank Led Mobile Money Transfer Program) in October 2010 as in less than

15 months since it launched its customers used the service had conducted nearly 2 million

transactions worth over PKR 3 billion. MCBs globally recognized and award nominated mobile

payments service allows existing account holders at MCB to conduct both non financial and

financial transactions.

MCBs globally recognized and award nominated mobile payments service allows existing

account holders at MCB to conduct both non financial and financial transactions such as:

Balance Inquiry Mini Statements (last 6 transactions) funds Transfer to any MCB account Utility Bill Payments Pay MCB Visa Credit Card Bills Maintain Favorites Make donations to charities


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a. Balance Inquiry:The existing customers of MCB Mobile banking can easily check their Account Balances by

logging in to the MCB mobile banking Application through their Mobile Phones by Using GPRS

services of their network operators. There is no time restriction as this service can be use 24hrs a

day.

b. Mini Statements:MCB Mobile banking customer can also get access through his/her mobile phone to his/her Mini

Account Statements of last 6 transactions by using MCB mobile Banking Application through

GPRS.


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c. Funds Transfer:MCB Mobile banking customer can send money to anyone using MCB Mobile Application, by

providing the complete 16-digit MCB account number or the 13/16 -digit ATM card number of

the beneficiary. It is not essential for beneficiary to be MCB customer. Or in case of beneficiary

is also a MCB mobile banking registered customer than funds can also be send to him by using

his/her registered Mobile number.

d. Utility Bill Payments:The registered customers of MCB mobile banking service can also pay their utility bills through

their mobile phones. By using this service a customer can not only pay his/her electricity , Gas

and other utility bills but also enable to pay his/her Mobile & internet bills as well.


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e. MCB Visa Credit Card Bills Payment:MCB Mobile banking customer can make MCB Visa Credit Card payments easily through this

service by his/her registered number. Customer has the option of paying a minimum payment,

more than minimum or the full amount.

f. Maintain Favorites:Registered MCB Mobile users can manage their favorite payees i.e. add or remove utility

companies or individual account holders to whom payments and fund transfers are made

frequently.

g. Report a Lost ATM card:Registered MCB Mobile users can report their card as lost or stolen using the service. The ATM

card will automatically be de-activated for a period of 24 hours.

h. Other Services:MCB Mobile Banking service also providing other financial services as well which are as

follows:

Buy Insurance Make Donations Top up prepaid mobile phones


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Recharge MCB Visa Prepaid cards

i. How to register:

Only MCB ATM card holders are eligible for this service. In order to register for this Service a

customer has to follow following procedure:


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7. Comparison among Major Mobile Banking Products In Pakistan:There are currently four major Mobile Banking Products are available in the markets of Pakistan.

The Brief comparisons among these four Mobile Banking products are given in the following

table:


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(Source: Internet)

8. Upcoming Mobile Banking Products in Pakistan:According to the CGAP report Pakistan is one of the fastest developing market for branchless

banking in the world. This is the reason that Mobile Banking is also flourishing in the financial

market of Pakistan and till now showed very effective results. As mentioned earlier that the two


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major branchless banking models have emerged in Pakistan Easypaisa by Tameer

Microfinance Bank and Omni by United Bank Limited and marked a success story with a span

of just two years, the combined daily transaction volume of the two services already averages

over 175 thousand, with an average size of Rs 3,700. So following figure is extracted from the

CGAP report upon Pakistans Branchless Banking market which shows the current and

upcoming Mobile and Branchless Banking products:

Mobilink is currently providing MMO service (Mobile Money order Service) with the

cooperation of Pakistan Post Office and Providing Basic financial services like funds transfer,

deposits, Bills payment services etc. Whereas recently Mobilink also acquired a Microfinance

Bank named Waseela Bank to provide mobile banking services like Easypaisa. BankAlfalah

will also launch its Mobile banking Service in coming days with the cooperation of Warid

Telecom. So in coming few year lots of new innovative Mobile and Branchless banking

products will be launched in Pakistans financial Market.

9. Price Comparison Analysis between UBL Omni & Telenore Easy Paisa:After the analyzing the Fund transfer rates of Both largely used Mobile banking products in

Pakistan following table shows price comparison between both product prices in market.

New Customer Pricing


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Slab Start

(in Rs)

Slab End

(in Rs)

UBL Omni Price

(In Rs)

Easy Paisa Price

(in Rs)

0 500 50 Rs.60

501 1500 80 Rs 60 (500-1000) & Rs 120 (1000-1500)

1501 4000 120 Rs 120 (1500-2000) & Rs 180 (2501-4000)

4001 7000 240 Rs 240 (4001-6000) & Rs 300 (6000-7000)7001 10,000 350 Rs 300 (7000-8000) & Rs 350 ( 8000-10,000)

10,001 15000 500 Not Available on Easy Paisa

(Ref: UBL Omni Agents)

The above table show the price comparisons between the funds transfer limits and their rates in

easy paisa and UBL Omni. From the above table it is easily concluded that easy paisa is an

expansive product as compare to UBL Omni. And this might be the cause of quick success for

UBL Omni as it was launched just two years ago. But as it is supported by a large commercial

bank and its model is also better than easy paisas Model so there it is concluded from the above

price analysis that UBL Omni is cheaper than Easy paisa for all of the following amounts:

Rs 0-500 Omni is cheap as it charges only 50 Rs

Rs 1000-1500 Omni is cheap as it charges only 80 Rs

Rs 1501-2500 Omni charge Equal to Easy Paisa i-e 120 Rs

2501-4000 Omni is cheap as it charges only 120 Rs

4001-6000 Omni charge Equal to Easy Paisa i-e 240 Rs

6000-7000 Omni is cheap as it charges only 240 Rs

8000-10,000 Omni charge Equal to Easy Paisa i-e 350 Rs

In Addition UBL Omni now offers Remittance up to amount of Rs 15000

(Ref: UBL Omni Agents)

10.SWOT Analysis:SWOT analyses on Mobile Banking are based on the discussion with different officials and

Agents who are related to Mobile Banking Products and services. Following are the SWOT

analysis on Mobile banking according to Pakistans Market:


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I. Strengths: One of the Main strength of mobile banking is its 24/7 availability. A customer who

wants to avail Basic Banking Services can easily get benefits by it in anytime and

anywhere in Pakistan.

Mobile banking products are boosting the performance of banking and financialinstitutions as banking is now become very convenient and easy to understand. Account

opening, Funds transfer and all other such financial services were never available in so

easy way on the customers fingers tips as compare to few years before.

No need to stand in queues at bank by having mobile banking customer every user canpay all his utility bills just by using his/her Mobile phone which is another strength of

Mobile banking.

The Overall cost of mobile banking is very Low as it is very beneficial for both Telco andFinancial Institute.

Another strength of Mobile banking is, its assistance to Government. Government canuse it for various purposes for example collection of taxation and distribution of

donations like recently done through UBL Omini for the disbursement of Benazir

Income Support Program.

And one of the most effective strength of mobile banking is that it is considered as one ofthe most effective tool to cover the large area of unbanked population in Pakistan.

II. Weaknesses: Mobile Banking is considered to an unsecure way of transaction as there are hugechances of fraudulence is always there. Its easy to get pin by fake SMS or Fake Call

from the Mobile Banking user.


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Scope of mobile banking is very limited yet as the banking services offer through mobilebanking are very much limited for example funds transfer limits are still very low.

One of another weakness in Mobile Banking is lack of Awareness among people aboutthese products still hundreds of people can be seen standing in queues in front of banks

for number of basic banking services which can be easily acquire through mobile

banking.

A large portion of Pakistans Population in illiterate which is a reason that though themobile banking products are still successful but still the level of trust and confidence of

people is very low about Mobile Banking products.

Another weakness of Mobile banking is its consumer cost. For example for customer whosends money by using funds transfer service have to pay high transfer charges as compare

to bank branch.

III. Opportunities: More than 102 million of mobile subscribers and only more than 80% of unbanked

population indicates the huge and effective number of opportunities for mobile banking

products in Pakistan it proper strategy applied.

The increasing interest and competition among Telecom companies is providing anotheropportunity to Mobile Banking products to flourish rapidly.

Over 175 thousands transactions of average 3700 PKR by two large Mobile banking

service providers is indicating an increase in public interest in Mobile banking services.

Large multinational financial companies like VISA are also working on Mobile bankingProducts which is also an opportunity.

Government support by using mobile banking services for the disbursement of donationsalso shows and opportunity for this product in coming few years.


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IV. Threats: Lack of awareness among people about Mobile Banking can be a threat in long terms for

these products.

Intense competition among Mobile banking providers can also be a threat for Mobilebanking.

Security is one of the biggest threat to mobile banking as most of the people do notconsider it a secure way.

Hacking and system failure can also be threat for mobile banking. As few years backufone customers faced extreme problem due to network failure as their main head office

got burnt by fire. So proper planning must be needed to impose.

11.Conclusion:It is concluded that Mobile Banking is not only one the most leading and successful product but

it is also an essential for the growth of any developing country especially if we observe in the

context of Pakistan it clearly indicates that in future Mobile banking will be a product that will

provide a gradual boost to the economy. It will help to create new job opportunities and will be

very helpful for various types of not only financial inclusion services but also social services as

well. We also discussed almost all current and upcoming mobile banking products that are

launched and will be launch in Pakistan. We analyzed the prices of two most successful and

pioneer products of mobile banking that are launched successfully in Pakistan and concluded that

which product is available on cheap prices. Last but not the least it will not wrong to conclude

that Mobile Banking is another name for the future of any successful economy in present world.

Mobile banking is an innovation which is helping banks and other financial institutions to

achieve which was once consider to be something unachievable, the way it is supporting the


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growth of economy is really very appreciable. The role of Mobile banking as an innovation is

leading the developing country like Pakistan to redesign a new and modified of economy.

Although there are some hurdles that are slowing down the progress of mobile banking for

example lack of awareness, trust and confidence of people but still the growth rate is above the

mark. In coming few years it can be estimated and predicted that a large portion of unbanked

population will be served not only mobile banking services but also enjoy other financial

services as well like insurance, mobile wallet etc. All these signs are actually the evidences of

the proof that mobile banking as an innovation today is the future legacy for strong and healthy

economies. So as far as Pakistan is concern current performance of mobile banking products is

very successful. Currently Telenors Easypaisa is largest mobile banking service product with

12600 outlets which are even more than total commercial bank branches that are working in all

over the Pakistan but as it is supported by a microfinance bank named Tameer Bank Ltd so

though its current performance is outstanding but on long term UBL Omni is much more

successful as it is supported by a commercial bank i-e United Bank Limited. Upayment is also

a newly launched mobile banking service which has limited scope till yet as it is performing its

operations on small scale by the support of Soneri Bank, Habib Bank and SUMMIT Bank but it is

still in its early phase. Mobilink has recently acquired a Microfinance bank i-e Waseela bank to

provide complete mobile banking services currently it is working with Paksitan Post office, and

MCB to provide mobile banking and financial Services on limited scale. Whereas last year MCB

was nominated among the top four best mobile money services category for Global GSMA

Mobile Awards. So it may not be wrong to conclude that mobile banking is one of the most

leading and effective product not only in present but in future as well.


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Role of Mobile Banking in Pakistan an overview of Mobile Banking Products in Pakistan

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