Dubai Islamic Bank Pakistan(DIBP), will start branchless banking by June 2018. The bank is the “wholly owned subsidiary of a UAE-based first Sharia-compliant financial institution” around the world.
M-wallet services will enable Dubai Islamic Bank Pakistan to speed up its growth & achieve the target set by State Bank of Pakistan’s (SBP). State Banks’s target is to increase market share of Islamic banks to 20% till 2020. Currently, their market share is 14%. The rest of the market share is spread amongst the conventional banks.
In Pakistan, nine conventional banks are already providing branchless banking services. They are offering it in partnership with tech companies.
Dubai Islamic Bank Pakistan Chief Executive Officer Junaid Ahmed said, “We are hoping to launch our branchless banking platform in June.”
He said this after he signed a contract with Zing Digital Commerce, a Chinese technology company. This company is introducing a tech-based system in the bank.
Branchless Banking will be quite beneficial for the customers of the bank. It will allow them to do their transactions via mobile phone. In easy terms as per Junaid Ahmed “It would make transactions paperless.”
He added “This would largely support economic growth… bring-in [high amount of] money into the banking system from out of the system at present. With this platform, DIB Pakistan will offer an array of products mainly to the unbanked population and in line with SBP’s strategy for financial inclusion.”
Pakistan Telecommunication Authority revealed that in Pakistan there are 145 million active phone users. 67% of them use simple phones while the others have smartphones. Also, the usage of smartphones is increasing every day in Pakistan.
Furthermore, SBP revealed that there are 27.32 million branchless bank accounts in Pakistan, as per statistics till June 2017. Out of the, 13.15 million are active users.
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Ghazanfar Ali Khan who is the Zing Digital Commerce Founder and Chief Executive Officer said, “We are bringing matured market experience into Pakistan. Pakistan has only 46 banks in total, while we are serving 1,300 banks in China.”