The use of mobile and online banking has increased as a result of commercial banks’ free services, which has caused clients to choose digital transactions over cash-based transactions at bank branches.
In Q3 FY21 (January-March 2021), the volume of mobile banking transactions reached 51.7 million (up 144%), valued at Rs. 1.3 trillion (up 178%), compared to 21.2 million transactions valued at 467.5 billion in the same quarter last year, according to statistics updated by the State Bank of Pakistan (SBP).
Similarly, during this period, 24.5 million internet banking transactions worth Rs. 1.5 trillion were recorded, up from Rs. 0.75 trillion in the same quarter last year, representing a 74 percent increase in volume and a 109 percent increase in value.
Users Base of Mobile and Internet Banking
During the last few quarters, the number of online and mobile banking customers has also increased significantly.
In comparison to the same period last year, the number of registered mobile phone banking customers increased by 20% to 9.8 million.
Mobile banking users have climbed by 5% quarter over quarter, while also increasing by 20% when compared to the same period previous year.
In the same way, internet banking users have climbed by 10% compared to the previous quarter, while they have increased by 30% compared to the same quarter last year. By the end of March 2021, there were 4.9 million internet banking subscribers.
The growth in transactions through the internet and mobile banking channels has been highly promising, as these channels have provided a convenient and round-the-clock option to its clients to complete their daily financial and banking demands throughout the COVID-19 pandemic, as evidenced by the data.
In Pakistan, the free Internet Banking Fund Transfer (IBFT) fund service has resulted in a massive increase in the use of mobile and internet banking, as well as the number of customers. During a period of more than a year, banks’ revenue from this channel decreased dramatically, but their user base grew at a rapid rate. Furthermore, client footfall at branches has decreased significantly, resulting in a reduction in human resource costs and other bank expenses.
The SBP has allowed commercial banks to charge clients 0.1 percent for IBFT services on transactions over Rs. 25,000.
For transactions above the monthly aggregate limit of Rs. 25,000 per account, individual clients may be charged a transaction fee of no more than 0.1 percent of the transaction value or Rs. 200, whichever is less.
The increasing cost of the IBFT service may have a minor impact on the growth of mobile and internet banking fund services. However, the money will be used to cover commercial banks’ and other financial institutions’ operational costs under the same category.
source: ProPakistani.pk
