Notes on Regulation of Branchless Banking in Pakistan

Publication Date: Jun 2007
Published by: Consultative Group to Assist the Poor (CGAP)
Document Type: Other

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Clearing the path for branchless banking in Pakistan

These notes offer details on what the Consultative Group to Assist the Poor (CGAP) branchless banking diagnostic assessment found in Pakistan.

The notes present the following CGAP findings:

• Policy makers in Pakistan are already attuned to some of the ways in which information and communications technology (ICT) and branchless banking models might be used to reach massive numbers of un-served poor people;
• Policy makers are open to the regulatory changes necessary to make this possible;
• Industry players, particularly mobile network operators, see the enormous potential of branchless banking as a profitable value added service;
• However, current regulation in Pakistan poses formidable challenges to branchless banking;
• Financial system and telecommunications policy makers and industry representatives have formed a committee to address these challenges.

The notes conclude by stating that the central bank, in close consultation with the industry, has started exploring legal and regulatory adaptations to facilitate branchless banking, which has already led to the emergence of many potentially viable paths.