E-banking In Pakistan Is On The Rise – Research Snipers

E-banking In Pakistan Is On The Rise

By end of March 2017, e-banking transactions in Pakistan have reached Rs9.3 trillion.

State Bank of Pakistan’s (SBP) Payment Systems Review data shows that in months between Jan-March e-banking transactions were 162 million that amount for Rs9.3 trillion. By volume growth seen is 7.3% while by value growth is 1.1% compared to previous quarter.

Larger value transactions managed through PRISM system had 253,795 volume and Rs. 69.8 trillion value. There was a decrease seen in volume by 4% while an increase in value by 20% in comparison to previous quarterly months.

Looking at the transactions with scrutiny, government securities trade transactions added 24% in value and 9% in volume, volume and value contributed by Inter Banks Fund Transfers were 74% and 58% respectively and Retails Cheques Clearing Batches contributed 18% in value and 26% in volume.

The transactions of value processed through paper-based instruments in this quarter were Rs. 35.2 trillion.  110.8 million transactions of value were processed which displayed a decline of 0.1% in value of the transaction and 5.2% in volume.
ATM is the most used mode for E-banking. Transactions through ATM contributed to 63% in volume and 12.6% in value of the overall transactions between Jan to March period. Total transactions through ATM were 102 million which was more than 8.2% in volume and 10.7% in value in comparison to the previous quarter.

Real Time Online Branches (RTOBs) transactions were preferred as the procedure for cash deposits, withdrawals and transfer within the bank.

Also read: International electronic gateway system to be launched soon in Pakistan

In e-Commerce, 0.3 million transactions were processed worth Rs. 2.4 Billion. In internet banking 6.8 million transactions worth Rs. 255.9 Billion were processed. The growth shown in this sector was 11.4% by volume and 14% by value. In internet banking transactions the highest share was of Utilities Bills Payment that is 36.4%.

There are 32 banks, 11 Microfinance Banks (MFBs), 2 specialized Banks and 8 Development Finance Institutions currently operating in Pakistan as per PSR. Branches of banks in the country reduced from 14,219 to 14,193. Some branches closed of banks as they were quite near to each other, especially after the merger of Burj Bank and AlBaraka Bank. ATM networks have increased to 12,515 from 12,352 which 1.3% increase compared to last quarter. 24 bank offer internet banking and 18 and 17 Banks/MFBs offer whereas Mobile Phone Banking and Call Centers/IVR Banking.