Dubai Islamic Bank announced on Thursday that it plans to begin branchless banking in Pakistan. The bank plans to start its branchless banking operations by June 2018.
Branchless banking is gaining momentum in Pakistan thanks to the user-friendly services offered by various banks and telecom operators. At the end of the last fiscal year 2016-17, the branchless banking accounts grew to 27.3 million which shows off its potential in the Pakistani market.
According to the Pakistan Telecommunication Authority (PTA), there are around 145 million active mobile phone users across Pakistan which a large market that can be targeted with the branchless banking solutions as there is no restriction of using a smartphone for any such transaction.
At the end of last year, the State Bank also asked the companies providing branchless banking to introduce a system that will Pakistanis to collect home remittance via mobile banking.
With the introduction of branchless banking platform in Pakistan, Duba Islamic Bank will be able to provide M-wallet services to its bank account holders making transactions paperless. It will also help the bank to bring a vast amount of money into the banking system as most of the Pakistanis still cannot access conventional banking platforms.
Currently, nine conventional banks and financial institutions are offering branchless banking in Pakistan in collaboration with various telcos and technology companies.
Dubai Islamic Bank Pakistan (DIBP) is a wholly owned subsidiary of the UAE-based first Sharia-compliant financial institution in the world and has total 46 banks in Pakistan.