According to the data received by the State Bank of Pakistan, Internet banking users in Pakistan stand at 2.3 million across 25 banks in the country. Internet banking transactions and volume also witnessed a growth during the last fiscal year. Internet banking transactions during the year were Rs. 968.7 billion, up by 10% from the preceding year. Internet banking transactions volume during the year was 25.2 million, marking an increase of 32.5% as compared to last year.
Utility bill payments of Rs. 18.6 billion in value transactions and 9.0 million in volume transactions were recorded, while Intrabank fund transfer contributed 6.6 million in volume and Rs. 258.2 billion in value transactions. Mobile banking app users stood at 2.5 million with 18 banks providing mobile banking services to their customers.
7.4 milliont of worth Rs. 141.4 billion were completed during the fiscal year, marking an increase of 12.1% and 25.7%, respectively on YoY basis. Intrabank funds transfer and Utility bills were also the key component in Mobile banking, contributing 2.1 and 3.1 million volume transactions, respectively. Value transactions from fund transfer and utility bills during the FY were Rs. 60 billion and Rs. 6 billion, respectively.
However, Pakistan’s penetration in the internet and mobile banking is still very low. The share of the internet and mobile banking stands at only 4% and 1%, respectively, of the total bank transactions. Adoption rate in Pakistan has been slow due to the fact that online banking is expensive in Pakistan as compared to other countries.
State Bank of Pakistan should make efforts to cut down the cost of internet and mobile banking as its operational cost is a lot cheaper than that of operating branches. Hence the benefit should be passed on to the end consumers as well.