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e-Banking posts 11.4pc growth in third quarter.

Electronic Banking (e-Banking) is flourishing in the country, as it posted 11.4 percent growth in the third quarter of current fiscal year due to its convenience and safe transaction.

A large number of banking consumers are diverting toward the e-Banking due to its ease as compared to paper-based banking, which required much paperwork. Retail payment system in Pakistan comprise of various paper-based and electronic cheques to modern smart cards. E-banking, credit cards. Automated Teller Machines (ATMs), online banking (Internet, call center and Mobile) are also included in the retail banking system.

The system handles high and low value transactions through paper-based transaction such as cheque and non paper-based transactions such as e-Banking, however the ease and comfort associated with e-Banking has been gradually reducing the volume and value of paper-based transactions in Pakistan.

The State Bank of Pakistan (SBP) on Monday revealed mat the use of electronic channels has been showing a consistent growth as during third quarter (Jan-March) of current fiscal year, the contribution of electronic transactions increased to 32.90 percent in numbers as compared to 31.22 percent during previous quarter.

The volume and value of total retail payment transactions in the country reached at 121.7 million and Rs.38.9 trillion, respectively showing increase of 1.1 percent in number and 2.5 percent increase in value during third quarter (Jan-March) of current fiscal year 2009, said SBP third quarterly report on the Retail Payment Systems of Pakistan.

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The volume and value of paper-based transactions in the country reached at 81.7 million and Rs.35.3 trillion, respectively showing a decrease of 1.4 percent in numbers and 1.6 percent increase in value.

While, the volume and value of e-Banking transactions in the country reached at 40 million and Rs.3.6 trillion, respectively showing an increase of 6.5 percent in volume and 11.4 percent increase in value during third quarter, the report said. ATMs are commonly used for frequent but small value cash withdrawals, therefore, its share in total number of electronic transactions was recorded to be the highest with 56 percent of total volume.

The report pointed out that the average size of ATM transactions was recorded at Rs.7,474 in third quarter as compared to Rs.7,140 recorded during second quarter. The share of Real Time Online Banking (RTOB) and Point of Sale (POS) in the total e-Banking was 31 percent and 11 percent, respectively. Call Centre, internet Banking and Mobile Banking, however, has comparatively low share in the total e-Banking business. In terms of value, the RTOB contribution was 94 percent, since this channel is mostly used for bank to bank transactions. ATM transactions contributed five percent in the value of transactions. The share in value of POS, Internet, Mobile banking and Call Center banking is very nominal and each sector has one percent share in e-Banking.

The report pointed out that the quantity of cards (debit / credit / ATM) in circulation during Qtr-3 reached at 8.4 million which shows a decline of 3.1 percent as compared to 11.7 percent increase in the previous quarter. Here the quantity of credit cards has decreased by 6.2 percent as compared to 1.8 percent increase in the previous quarter reaching at 1.7 million. Debit cards has decreased by 2.5 percent as compared to 16.3 percent increase in previous quarter and stood at 5.8 million.

The volume and value of ATM transactions in the country reached at 22.5 million and Rs.168.4 billion, respectively showing a growth of 5.2 percent in numbers and 10.2 percent in value in third quarter of fiscal year 2009.

RTOB Transactions in the country reached at 12.4 million in term of volume with 14.8 percent growth and the value after 11.7 percent growth mounted to Rs.3.4 trillion.

Other e Banking Channels like POS, Internet & Call Center/IVR, and Mobile transactions in the country reached at 5.1 million in term of volume and Rs.39.8 billion in term of value during the period under review.
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Comment:e-Banking posts 11.4pc growth in third quarter.
Publication:Economic Review
Geographic Code:9PAKI
Date:Jun 1, 2009
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