On the whole, Pakistan has many of the features that make agent-led branchless banking possible and even likely. Vibrant competition, growing data connectivity, generally permissive regulatory regime, and large untapped markets all point toward a medium-term convergence of technologies and business models that could enable a rapid scaling up of more inclusive financial services, including lending, savings, insurance, and payment transfers. This will not happen, however, without some interventions to incubate business models, create demonstration effects, build internal capacities, and insulate some players from the potential for near-term losses arising from the need to innovate and experiment. Technologies aimed at the convergence of mobile telephony and banking are ahead of regulatory regimes, but still lack maturity in some respects. Pilot projects, using a set of technology, are warranted if aimed at providing additional business model data or “proof points”.
VTT has carried out a detailed micro-finance banking report highlighting the strategic interaction between the mobile sector and the microfinance banking sector, the regulatory and the technical issues and the way forward.
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