Money transfer, bill payment and easy loads made life easier with introduction of Branchless Banking or ‘mobile banking’. The telecom sector and commercial banks have summed the lengthy processes to provide easy solutions for financial payments. The ‘easy’ element of mobile banking is what attracts the common man in Pakistan. These less complex services are thoroughly explored with the introduction of Telenor EasyPaisa services.
In case of Pakistan, the customer is any layman with little or no knowledge of the complex banking system. His primary source of funding entails receiving money from relatives residing outside the city. Replacing the earlier bank draft system, Tameer Microfinance Bank headed ways to alter the steps for money transfer or bill payments. In a market where big banks target the ones with the money, TMB recognized the market where transaction exceeds those playing with big numbers.
Telenor Easy Paisa is the brain child of Nadeem Hussain, a banker by profession having expertise in his field with Citibank now holds the title of CEO Of Tameer Microfinance Bank. Having spent his life aboard, he wanted to come back to Pakistan and add to the development, create a world class organization, based in Pakistan, managed by Pakistanis. “In Pakistan, 12% of the people have access to credit, and less than 1% of the people have access to life insurance. 0.5% for health insurance. In a country of 180 million people, you have less than 22 million people, with bank accounts.” Shares Nadeem. Today, the success rate of easypaisa has been 100% as it is rated at No. 3 in the world for mobile payments.
Tameer Microfinance bank is for the common man and currently listed on the 20th position for top banks in the world. Nadeem envisions taking the bank to No.1 as far as mobile banking is concerned. It branches are located in areas with highest number of working class people in Korangi, Landhi, Baldia Town, Manzoor Colony and Orangi town.
“So for me, it’s not just corporate social responsibility, this is a valuable customer base, you treat them like large commercial banks treat their gold customers, these are my gold customers.” The target is middle income group which is taken for granted by big banks regardless of the fact that they are ones who drive the economy. On a daily business, Easypaisa carries out 5 million transaction because of the fact that transferring money is as easy giving your CNIC number and cash along with CNIC number of the of the recipient. The transfer is hassle free and takes place within minutes.
Hussain aims to take easypaisa transactions from 7.5 million/month to 20 million/month. To achieve such a large scale, connectivity is the key. This is where new technology is included to bring down the operating expenditure. So when a bank deals with a network that large best of technology needs to adopted. The solution is using the best operating systems, minimizing the cost and figuring out ways to induce more cost saving technologies. By the end of the year TMB will automate the account opening process using the biometric device for indentification in its 20,000 locations nationwide. The launch of this new system will eliminate the lengthy process of filling in 12 pages of the account opening forms without submitting a CNIC copy or a photograph. Using data to download the information in real time the system will automatically fill in the details and account can be opened within minutes.
“ Microfinance is a very costly, loan size is very small therefore, any cost incurred is a loan proposition. If the customer has to travel from the one village to other, to make the payment it is time consuming and expensive method.” Says Nadeem.
This where TMB induced the use of technology and told other microfinance institutions, that they will accept their payments at the Easypaisa register. So again, using technology they made it convenient for the customer in real time. The person pays the agent, who updates the system and the payment is made.
Easypaisa is the payment bridge between mobile banking and conventional banking now just by going to any Easy Paisa agent, you can transfer money to your account at 11 o clock at night, on a Sunday or on a Saturday, all you need is a bank account. With the aspects of State Bank, using the technology, using the agent’s handset , as a term to make a transfer through 1link IBFT facility, to a commercial bank account from either the m-valet, or over the counter. They are constantly using technology to create bridges, and addressing the needs of the people on the larger and out of the commercial bank system.
TMB’s vision is now to tap into the saving market. They soon plan to launch, virtual gold product where people save in gold, they hold up cash and then they wait for enough cash that they require. This initiative is taken in conjunction with PMEX. To save in gold, you just have to go to an Easy Paisa agent, mobile valet, buy gold worth rs.500 at the existing market rate. The gold will be bought virtually, which means no physical delivery and the agent will credit the scratch amount into your account. When its time to redeem gold, you can easily sell the gold at the market rate. This whole idea is saving enabled, using technology to create gold saving. So people can now save in virtual gold now.
Tameer Microfinance Bank is made by the Pakistanis, for the Pakistanis. In the coming year this financial institution plans to open 40 more profile locations The Tameer team is motivated to wake up in the morning and believe that they are changing the industry. Motivation comes from within and Tameer Microfinance Bank is working round the clock to spread the good energy around.
