It gives me immense pleasure to be a sponsor of the 4th Mobile Commerce Conference. The growing number of participants and speakers each year is a clear manifestation of excitement in the local industry around the area of Mobile Banking. No longer just a phenomenon in the developed world, mobile technology has had the most profound impact in developing countries as it brings telecommunication to never-before-reached locations.
Most notably, the availability of mobile services outstrips the availability of banking services in most developing markets. This offers a wide array of business opportunities for banks, mobile network providers, technology providers, but more significantly, opportunities for organisations and individuals around the world to lower costs and considerably enhance the level of convenience with which they conduct their personal and business financial transactions.
In developing nations, mobile technology has been an important driving force for the improvement of Financial Inclusion. It has proved to be a very cost-effective channel for increasing the accessibility of financial services for the unbanked, due to their pervasive availability, usage and familiarity across all walks of life. The range of sectors that can benefit from mobile financial services includes the currently financially excluded population, Government and Donor communities, large corporations, health service providers and a myriad of other sectors.
In Pakistan, mobile technology in tandem with Branchless Banking via retail agents has been highly effective as a model by which financial services are offered to the large unbanked segment of our population. This has brought about many new avenues for providing fast, efficient and transparent government disbursements to millions already. Additionally, increased financial access for the unbanked segment of society is expected to reduce their vulnerability to periodic economic and social shocks. An important step towards Financial Inclusion, the highlight of 2010 was the much anticipated launch of 'UBL Omni' Branchless Banking. The array of services offered by UBL Omni include basic banking services such as account opening, cash withdrawals and deposits as well as several value added services including remittances, bill payments and purchase of mobile airtime.
This model of financial inclusion has resulted from the vision of the State Bank of Pakistan, which after reviewing various branchless and mobile banking models around the world, decided on a framework that safeguards the rights of consumers, and provides an opportunity for banks to leverage the country wide adoption of mobiles in the delivery of financial products and services.
In its first 10 months UBL Omni has managed to grow to a network of more than 2,600 Dukaans spread across more than 450 cities and towns of Pakistan and has facilitated millions of customers in carrying out various financial transactions.
UBL Omni has also been the recipient of a USD 1.5 million grant by the Bill & Melinda Gates Foundation through MEDA, for supporting the flood relief payments "Watan" project. In addition, the Bill & Melinda Gates Foundation has also announced a USD 6.9 million grant through ShoreBank to support enhanced financial inclusion of the country's underbanked population through UBL Omni.
Branchless banking has revolutionised the very meaning of the 'financial sector' by expanding it to welcome the unbanked into the financial world. Pakistan's advent into the world of Branchless Banking is still relatively new, but the experience of the international players indicates that it will be a promising venture. While it may be too early to declare it an imminent success, branchless banking and UBL Omni have created in-roads for the unbanked and its positive effects on the economy are being felt steadily.
With forums such as the Mobile Commerce Conference where all stakeholders gather to share their experiences and learn from one another, I am confident that we will be able to work together and learn from each others experience to make branchless banking a ubiquitous reality for the underprivileged & the un-served.