The Islamic Republic of Pakistan is the sixth most populous country in the world, located at the crossroads of the strategically important regions of South Asia, Central Asia and Western Asia. It is currently witnessing one of the fastest growth rates of branchless banking anywhere in the world. A unique business model has been discovered, for collaboration between mobile operators and banks.
The country is currently undergoing a transformation in financial services, with the spread of Digital Money aided by the rapid penetration of mobile phones.
The author works with organisations around the world to shift the thinking from a focus on Mobile Money to planning for Digital Money.
This series of reports shares findings from the ongoing in-depth analysis of the state of play of digital money initiatives in each country, within the context of the larger region and world-wide trends.
This report is part of the Digital Money Country Series that covers innovations in different services involved in digitising money and providing improved financial services around the world. Digital Money services are no longer confined to a single industry, and this breaks down traditional models of competitive analysis.
The series helps players to understand the strategies and business models coming from industries other than their own, across a range of products and services and from different parts of the world, to distil best practices for building successful brands that provide innovative access to financial services.
Through this series of reports we share findings from an on-going in-depth analysis of the state of play of Digital Money Initiatives in each country, within the context of the larger region and world-wide trends.
Why this Series?
The Digital Money Country Viewport™ Series provides an in-depth understanding of the digitisation of payments globally and for each of the major regions and countries of the world. This report is based on our in-depth research and analysis of over 1500 different digital money initiatives in over 200 countries and territories.
We analyse the strategies of over 5000 players around the world, tracing their reach, ownership and partnering in order to determine and assess their current initiatives relating to Digital Money. This aims to provide a clear understanding of all the kinds of services that now compete with or supplement each other, how they apply in different geographies based on needs and regulations, and what they could mean to your business.
What is at a premium is your time, so this report aims to be educative but also to act as a ready reference that helps you harness new opportunities at the intersection of online, offline, mobile, social and local.
This report will be particularly useful to providers who are in the country or invest in the country, or operate in countries that have large numbers of migrants sending money to that country. It will also be useful to Development agencies, Regulators and Government bodies and Funding organisations. As this report covers a historic period in the development of branchless banking, in a country that is one of the pioneers of mobile-based branchless banking, it will be useful to people who are involved in similar projects elsewhere in the world.
As other countries have also adopted similar regulatory models, this report is relevant to those interested in other countries engaged in similar market development activity.
You will find this Series of reports useful if you are in Telecoms, Banking, Payments, Technology, Cards, Retail, Money Transfer, Venture Financing – indeed few industries are not actually touched by the revolution we make sense of here.
It will be relevant to you if you are considering, or not considering entry into financial services. If you are considering entry it will help you uncover aspects that we hope will contribute to the success of your enterprise. If you are not considering entry it will provide a useful guide for you to anticipate and detect changes that may affect your business. Did the advent of acceptance of cards affect your business? If it did, then get prepared for Digital Money 2.0.
If you are new to this field, you will still find this a useful introduction but may need to supplement this report with others in our series. Please contact us to request details of our full range of products and services including Country, Regional and Service reports and Player and Group profiles.
This publication is in the author’s Viewport™ format. These are 200+ page documents that offer the portability of a report with the navigability of a portal. There are links to the websites of the key players, initiatives, regulators, entities and other important connections related to the country.
The first part of the report contains analytic content that is useful to Senior Executives within Strategy, Business Development and Market Development functional areas. The latter part of the report is useful to the project team and is a useful toolkit for actioning the insights obtained from the report.
Each report offers distilled country trends that are likely to spread, and the Opportunities and Challenges for you.
It provides contextual knowledge relating to markets and initiatives to help regulators, developers and practitioners answer questions such as the following:
1. What are the trends in the use of Digital Money in meeting market needs?
2. How have regulations changed and what other changes are likely?
3. How should you prioritise markets for launch?
4. Which are the leading innovations in each market, and what made them successful?
5. Which attempts at Digital Money services failed to take off and why?
6. How do you get consumers to adopt and stick with your new way of transferring money and making payments?
7. How do you make it beyond Year 1, and achieve commercial success?
8. How should you prioritise consumer segments?
9. What channels must you support?
10. Who should you look to partner with in each part of the world, and what if you are competing with them?
11. How do you get cash in and out of your digital wallet, what agent network is best for you?
12. What is the most effective way of managing regulatory compliance?
13. What approach should you take towards branding your services?
14. How should you manage personal data, with a win-win approach?
15. What technologies should you favour?
16. What is the package of services you will need to offer?
Chapter 1, The Context introduces the reader to the concept of Digital Money and explores how this exciting new area is developing all around the world.
Chapter 2, Digital Money in the Country provides an introductory overview of how services are developing – What is driving Digital Money, the kinds of business models and the state of adoption and maturity of the market.
Chapter 3, Market Segments goes into the detail of the needs of various market segments. It describes the demographics and the access to Financial Services.
Chapter 4, The Services Explored discusses the whole package of services expected by the market. Although a provider may choose to specialise in certain areas, they may need to partner with others to ensure the consumers enjoy a seamless experience with all the features and functionality they expect.
Chapter 5, Regulatory Environment provides an overview of the regulations that shape the growth of the industry and provides a description of the regulations and the rules that govern the provision of services.
Chapter 6, Ecosystem Analysis discusses the evolving models in the country. It provides an understanding of the Payments System in the country and introduces the various categories of players and the Partnerships that are forming around the delivery of Digital Money Services.
Chapter 7, Player Profiles provides a detailed profile of each of the players in the country. It is organised by class of trade. There are links from the Player Profile to each of the Digital Money Initiatives in which the player participates.
Chapter 8, Digital Money Initiatives (DMI) provides a detailed profile of each of the services launched in the market. We provide the framework to show the digital money flows in the end-to-end process between Sender and Receiver, and describe the services offered. There are links from the DMI Profile to each of the players involved in the initiative.
The Appendix provides a description of the Methodology we use and has a useful Glossary of terms and concepts.