The world has witnessed an unprecedented revolution in the past decade. According to a recent UN report, the number of global mobile subscriptions has quadrupled from approximately 1 billion in 2002 to more than 4.1 billion end of last year.
The sudden upsurge in the adoption of mobile phones is most marked in developing nations, where the mobile phone became the first communications device in history to have more users in poor countries than in developed. In Pakistan, mobile penetration has been rapidly increasing and according to a 2009 Information Economy Report by UNCTAD, it is among the top five dynamic economies of developing Asia in terms of mobile penetration. However, another reality common to most developing nations, including Pakistan, is the fact that the availability and adoption of mobile services outstrips the availability of financial services.
According to recent studies by CGAP (Consultative Group to Assist the Poor), an estimated 3.5 billion people are unbanked worldwide, of whom 1 billion have mobile phones. By 2012, this number is expected to grow to 1.7 billion. In Pakistan, the State Bank figures suggest that there are approximately 26 million bank accounts in comparison with the 97 million mobile phone users.
Globally, mobile commerce solutions have been around for over a decade, but their potential means of financial inclusion was only explored in 2004 when GCASH was introduced in the Philippines to transfer money and pay utility bills using airtime credits.
Similarly, over the years Pakistan's financial sector also experienced a dynamic transition, led by the increasing uptake of technology solutions. One of the earliest serving of the unbanked in Pakistan started when United Bank Limited (UBL) launched its 'mobile banking' in 2007. Although very simplistic, the beta version of the branchless banking service was a first-of-its-kind payments solution that enabled customers with GSM mobile connections to carry out simple financial transactions using their mobile phones. With the promulgation of the State Bank of Pakistan's robust regulatory framework, the opportunity to introduce a truly transformational Branchless Banking service came in 2010.
UBL Omni: For the Unbanked sector UBL Omni is a revolutionary Branchless Banking service, where banking services are being provided via UBL Omni Dukaans (retail agents) and other alternate delivery channels. The minimum requirements for opening an account with UBL Omni are the customer's mobile number and CNIC number.
Simultaneously, UBL Omni account holders have the facility of utilising additional channels, such as, internet, SMS, IVR and phone banking. Non-account holders are also entertained at a UBL Omni Dukaan where they are eligible to make utility bill payments, send or receive money, purchase mobile card vouchers and make post-paid mobile bill payments.
The establishment of a large agent network has increased the outreach of financial services at much lower costs compared to a branch. Additionally, unlike other Branchless Banking models a factor that is unique to UBL Omni's functioning is that it is 'Telco-Agnostic', meaning that it does not discriminate against customers based on the type of mobile network they belong to.
UBL Omni also managed to take the lead in transforming the Government to People (G2P) arena in Pakistan by working closely with the GOP and multilateral agencies. The Bank provided transparent and efficient cash disbursement services for more than one million flood affected people in KPK, Punjab, Sind and AJK, more than 20,000 World Food Program (WFP) beneficiaries and more than 400,000 recipients of the Benazir Income Support Program in different remote parts of Pakistan. These efforts have led UBL Omni to be recognised as a benchmark and a role model for G2P payment services, not only locally but also internationally.
UBL Omni: For the Corporate sector UBL Omni's Branchless Banking model is geared not only towards the retail customer segment, but has proved to be extremely successful in providing efficient and transparent Cash Management/Payment Solutions in Corporate, Government and NGO assignments.
Since its inception, UBL Omni has provided cash management solutions for a diverse and wide array of corporations and institutions, ranging from large MNCs, SMEs, FMCGs, Microfinance Institutions and Educational Institutions. Additionally, large scale aid disbursements in tandem with the government and development organisations such as WFP, NADRA and BISP have also been successfully executed.
UBL Omni is expanding its Branchless Banking platform to serve the cash collection and disbursement needs of Corporations across various industries. For clients, this means a significant reduction in paper based and manual efforts. Additionally, customers are facilitated with proximity payments and the ability to avail financial services outside conventional banking hours and bank holidays, at a location and time of their convenience. With an agent network of more than 2,600 Omni Dukaans spread across more than 450 cities and towns across Pakistan, UBL Omni's service outreach is widespread and continually growing. Furthermore, the sales team and number of agents/Dukaans for a particular location is easily expandable based on specific project needs. UBL Omni takes great care in selecting and partnering with agents to become its Dukaan representatives.
The aim is to ensure that everyone who uses our Branchless Banking facilities can be guaranteed the same protection that they would enjoy when using a traditional bank. With technology offering superior solutions not normally available via conventional banking, corporations can have accounts that can be operated from different electronic channels by the customers. The various channels currently supported are UBL Omni Dukaans, SMS, Internet/WAP, ATM and any UBL Branch.
Earlier this year, The Governor of the State Bank of Pakistan (SBP), Shahid Kardar, emphasised on Branchless Banking as the future of the country's financial sector for bringing the unbanked segment of society into the formal financial system. UBL Omni shares these sentiments and strives to create new and more efficient business models by keeping cognizant of modern trends and techniques. UBL Omni is now committed to making customised solutions via its Branchless Banking platform for all sectors of Pakistan.
(The writer is currently working as a Product Analyst for UBL Omni and holds a Bachelors degree in Economics with Development Studies from SOAS, University of London. He can be reached at kci.ecom38@ubl.com.pk)