State Bank governor launches Asaan Mobile Account

KARACHI: State Bank of Pakistan (SBP) Governor on Monday launched the Asaan Mobile Account (AMA), which allows opening of a branchless banking account on a mobile phone, a statement said.

The bank account may be opened by dialing a simple code *2262# on a mobile phone.

The accountholders can then deposit money in his or her account at any branchless banking agent and use the same for transactions through mobile phone.

AMA is an initiative of the central bank to achieve National Financial Inclusion Strategy (NFIS) target of promoting digital financial inclusion in the country.

AMA has been launched with the key support of various stakeholders, including Pakistan Telecommunication Authority (PTA), National Database registration Authority (Nadra), branchless banking providers, cellular mobile operators (CMOs) and virtual remittance gateway.

VRG has been licenced jointly by the SBP and PTA under the regulations for mobile banking interoperability.

The launch ceremony was chaired by Dr Reza Baqir and addressed by Sima Kamil, deputy governor of the SBP; PTA chairman Major General Amir Azeem Bajwa HI (M) (Retd), Nadra chairman Muhammad Tariq Malik and VRG chairman Ikram Sehgal.

The ceremony also witnessed the signing of a memorandum of understanding (MoU) among 13 branchless banking service providers. The MoU was signed to affirm their commitment in facilitating customers through continued collaboration for more innovations in line with the NFIS vision.

Speaking on the occasion, Dr Baqir thanked the stakeholders for their contributions that culminated into the successful launch of the AMA initiative.

He said AMA is expected to bring a significant increase in bank accounts opening and the lack of internet access or proximity to branchless banking outlets/bank branches would no longer be barriers for Pakistanis to access financial services.

Accounts can now be opened simply by dialing a USSD code *2262# from any mobile phone (smart or simple feature phone) through any mobile network, without requiring the internet connectivity.

The customers will have the choice to choose from any of the 13 branchless banking service providers that are currently offering AMA.

Governor Baqir said that the AMA would play an important role in enhancing digital access and use of formal financial services in the country, adding that Pakistan has over 187 million biometrically verified mobile subscribers with the tele-density of around 85 per cent; however; there are only 106 million 3G/4G subscribers with the mobile internet penetration standing at 48 per cent.

This gives us the potential market of around 81 million mobile subscribers, which don’t have access to the internet and could become users of AMA if provided with the right value proposition.

AMA will particularly help the low-income segments with non-digital phones and no access to internet to enjoy banking, as it offers a simpler process, such as dialing a code, to avail financial services.

Moreover, AMA will be a highly suitable platform to onboard Pakistani women customer segments, as well, since they face greater obstacles in accessing formal financial services due to mobility, cultural and documentation issues.

AMA with its ease of use will be instrumental in bringing the next 50 million Pakistanis under the banking ambit.

This initiative is also in line with the government of Pakistan’s holistic approach of “Digital Pakistan” initiative to enhance access and connectivity, digital infrastructure, and innovation.

Now, the government will also have the option to use this channel for disbursing money under the flagship poverty alleviation Ehsaas Programme to reach 15 million beneficiaries.