Banks are pushing into wireless services for the second time this decade and, at least on the surface, the timing seems better today. Past few years have been very stimulating for the telecom and banking sector developments. We have witnessed a steady progress businesses have made to become an integral part while broadening the financial inclusion base.

It is nothing wrong to say that Pakistan is perceived as a developed nation when it comes to technological advancements being made in financial and telecom sector. As for mobile banking, regulators from financial and telecom side have been successful in adopting a strategy which ensures the basic purpose of reaching to the unbanked.  Unlike a telco led model, we are fortunate to have a financial inclusion strategy where branchless banking is a component of providing overall holistic financial services. We have recently heard news of banks moving into cellphone banking. MCB and UBL were the first to move into this very important area of banking. Pakistan Post Office together with Mobilink also introduced innovative mobile banking products. We think it is an important chapter in the development of Pakistan’s banking industry. This will not only improve the banked to much more easily access banking services, but will also make it easier for those who remain out of reach to finally join those already using banking services.

Mobile phone penetration in this country continues to improve to cover even the remotest regions. Half or even more than half of Pakistan’s population has access to a cell phone. It would not be far-fetched to say that in every family in this country there are a number of cellphone users. In fact it is no longer unusual to find a senior citizen utilising cellphone technology. Also members of the working class in urban areas stay in constant touch with their relatives and dependents, largely in rural areas. The ability to use cell phones in conducting financial transactions should therefore, lead to expanded access to banking services by everyone.

However, while these strides are being made we have to be alert to the potential challenges that come with the latest advances in science and technology. We would like to urge banking services providers to particularly make sure that their customers do not fall victim to new money-laundering scams. They should further help make accessing cellphone banking secure. In these times of electronic communication, the criminal has become quite sophisticated and it is important that both the banking services provider and the customer are diligent in their interaction. We wish to throw this challenge to the banking industry to keep this in mind while they continue to improve accessibility.

Security should never be sacrificed for the sake of commercial success. We think this is important. We would also like to urge customers to be conversant with new potential dangers. This naturally calls for closer cooperation by the banking services providers, customers and law enforcement fraternities.

Amir A. Khan