Pakistan has become the world leader in money transfer through mobile shared networks with the highest rates of non-exclusivity and non-dedication in 2017. This was disclosed at an event organised by Karandaaz Pakistan in collaboration with Bill Gates Foundation and UKAID here on Thursday at the occasion of release of Agent Network Accelerator (ANA) survey report.
The event was told that large mobile network operators (MNO) increasingly dominate the digital financial services (DFS) landscape accounting for over half of the market presence as the market becomes less fragmented. The market is still largely focused on over-the-counter (OTC) based P2P transfers, although the regulations on biometric IDs provide the impetus for providers to transition customers from OTC to wallets. Large-scale e-wallet adoption could unleash new wave of product and service innovation. Currently, however, only one-third of agents offer wallet registration and agents cite low customer awareness as hindrance to registering customers.
As per the survey report, Pakistan is a highly competitive market with a pair of front-runners and a pair of runners-up. It is home to the world's leading shared agent networks with highest rates of non-exclusivity and non-dedication, established and maintained through franchises. Agents earn reasonable profits and are optimistic about their future as agents. The share of agents offering cash-in/cash-out and account registration services has grown and agents do not appear to be concerned about the transition from OTC to wallet. Pakistani providers have perfected agent liquidity management support; virtually all agents have liquidity delivered, most agents receive regular visits from support staff, a few also access on-demand facilities.
Agents reported fraud and crime remain low, relative to other mature DFS markets which can be credited to the SBP's requirements on the biometric verification system (BVS), enacted as part of the anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts. However, as mobile money uptake increases, providers will need to ensure their agents are prepared to prevent and mitigate fraud further.
The Agent Network Accelerator (ANA) project is a four-year research project, covering 11 focus countries including Pakistan, Kenya, Uganda, Tanzania, Bangladesh, India, Zambia, Senegal and others.
The survey managed and conducted by MicroSave/the Helix Institute of Digital Finance. It is the largest research initiative in the world on mobile money agent networks, designed to determine their success and scale. The event was attended by all stakeholders of mobile money industry, including EasyPaisa, JazzCash, UBL Omni, etc, and regulators such as the State Bank of Pakistan and the Pakistan Telecommunication Authority.
The survey is designed to provide valuable insights for the digital financial sector in Pakistan and provides recommendations for developing sustainable networks of mobile money agents. This report highlights the key findings on the mobile money agent landscape in Pakistan.
CEO Karandaaz Pakistan Ali Sarfraz Hussain highlighted the significance of this survey conducted by the Helix. Hussain said, "We are confident that this survey will go a long way in creating sustainable agent networks that will catalyse greater financial inclusion in the country. Karandaaz Pakistan is at the forefront of advancing financial inclusion in Pakistan and agent networks are pivotal to achieve this objective."
He further said that Karandaaz is of the belief that this research will be of significant value to all operators as well as policymakers, adding it will exponentially lead to a solid foundation for agent networks across the country connecting more households with the formal financial system.