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Mobile Banking & Pakistan

IBP 2013

Assignment

The Institute Of Bankers Pakistan Topic The Role of Mobile Banking In Pakistan
(An Overview of Mobile Banking Products in Pakistan)

Author Saad Bin Mehmood MBA (Banking &Finance) Batch No: 2011 Submitted To:
Mr. Kamran Ahmed Khan Officer in Charge Institute of Bankers (Provincial centre Peshawar)

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Acknowledgment

As the Author of this Project first of all I would like Thanks to my dear Allah who granted me enough power, knowledge and motivation to write this working paper. I would also love to thanks to my respectable and loving parents who are always here to support me. I would also give my special thanks to Mr. Kamran Ahmed Khan, Officer In Charge, Institute of Bankers, (provincial centre Peshawar) to grant me an opportunity to start this project and helped me out in different phases to complete it. I would always thanks to friends and fellows to encourage me during my struggle

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Preface
Economy is the key of success in present modern world which is always based on strong pillars of financial services. Banking sector is the major hub of finance hence an essential for a prosperous economy this working paper explains the Role of Mobile Banking In Pakistan. It Provides an Overview of Various Mobile Banking Products that are Operating in Pakistans Market. This document will help the students and other learners to educate them about the various Mobile Banking Products, Their Background, effects, and other detailed information of mobile banking products in the markets of Pakistan.

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Executive Summary
Mobile Banking is not only one the most leading and successful product but it is also an essential for the growth of any developing country especially. Initially this Paper explains the significant of Mobile Banking in todays Economy. It explains the level of importance of mobile banking for the economy of developing countries as well as for the soundness of financial institutions and telecom companies. It through the light on various aspects and clearly indicates that in future Mobile banking will be a product that will provide a gradual boost to the economy. The Document than Explain the Role of Mobile banking in the context of Pakistan and tried to project how mobile banking will help to create new job opportunities and how it will be very helpful for Businesses and various types of not only financial inclusion services but also social services as well. This paper also briefly discusses almost all current and upcoming mobile banking products that are launched and will be launch in Pakistan. The paper also discuss the details about mobile banking products and also analyzed the prices of two most successful and pioneer products of mobile banking that are launched successfully in Pakistan The paper concludes that which product is available on cheap prices. Last but not the least it will not wrong to conclude that Mobile Banking is another name for the future of any successful economy in present world.

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Contents
1. 2. 3. 4. I. II. III. 5. I. II. III. IV. V. 6. I. a. b. c. d. II. a. b. c. d. III. IV. a. b. c. d. e. Introduction:.......................................................................................................................................... 7 Literature Review: ................................................................................................................................ 8 Background of Mobile Banking:........................................................................................................... 9 Mobile Banking in Pakistan: ............................................................................................................... 10 One to One Model:.......................................................................................................................... 10 One to many Model: ....................................................................................................................... 11 Many to Many Model: ................................................................................................................ 11

Effects of Mobile Banking in Pakistan: .............................................................................................. 11 Mobile Banking & New Employment Generation: ........................................................................ 12 Mobile Banking & Tax Earnings Growth: ...................................................................................... 13 Mobile Banking As a Tools for Government:............................................................................. 13 Mobile Banking & its effect on Firms, Merchants, and Middlemen: ......................................... 14 Effect of Mobile Banking on Society: ............................................................................................ 15 Mobile Banking Products in Pakistan: ................................................................................................ 15 Easy Pesa: ....................................................................................................................................... 15 Mobile Account services:............................................................................................................ 16 Easypaisa Money Transfer: ......................................................................................................... 16 Bill Payments: ............................................................................................................................. 16 Other Services: ............................................................................................................................ 17 UBL OMNI: .................................................................................................................................... 17 Account Opening: ....................................................................................................................... 17 Money Transfer:.......................................................................................................................... 18 Bill Payments: ............................................................................................................................. 18 Other Services: ............................................................................................................................ 18 UPayments: ................................................................................................................................. 18 MCB Mobile Banking: ............................................................................................................... 19 Balance Inquiry: .......................................................................................................................... 20 Mini Statements: ......................................................................................................................... 20 Funds Transfer: ........................................................................................................................... 21 Utility Bill Payments: ................................................................................................................. 21 MCB Visa Credit Card Bills Payment: ....................................................................................... 22 Page 5

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Mobile Banking & Pakistan


f. g. h. i. 7. 8. 9. 10. I. II. III. IV. 11. 12.

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Maintain Favorites: ..................................................................................................................... 22 Report a Lost ATM card: ............................................................................................................ 22 Other Services: ............................................................................................................................ 22 How to register:........................................................................................................................... 23

Comparison among Major Mobile Banking Products In Pakistan:..................................................... 24 Upcoming Mobile Banking Products in Pakistan: .............................................................................. 25 Price Comparison Analysis between UBL Omni & Telenore Easy Paisa: ......................................... 26 SWOT Analysis: ............................................................................................................................. 27 Strengths: ........................................................................................................................................ 28 Weaknesses: .................................................................................................................................... 28 Opportunities: ............................................................................................................................. 29 Threats: ....................................................................................................................................... 30 Conclusion: ..................................................................................................................................... 30 References:...................................................................................................................................... 33

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1. Introduction:
In 21st century, the sole objective of Businesses is to provide convenience and ease to their customers to meet their main objective, i-e Maximization of the Profit. Man has invented and developed so many products which have made his life easy and facilitated. It is Technology that is alleviating the standard of lives of the People among the nations. Even the economic growth of the country is also dependent heavily on the technology. So we use thousands of electronics devices in our daily life. One of these Devices is a Mobile phone. We use Mobile phone mainly for Communication purpose but now in recent few years this device has developed in very broad and positive way, and this is the reason that now this device is one of the most usable device in the entire world. More than 60% of worlds Population uses Mobile Phone on daily basis. This frequent use of the mobile has opened new doors for the next generation businesses for example every day thousands of Mobile phone applications are developing that are use by users for lots of purposes. So it wont be wrong if we say that mobile phone has provided a new shape to not only businesses but economy as well. When we say that the mobile phone is very effective for the growth of a healthy economy, then numbers of questions arise in our mind that how is it possible? Or how a minor device can put an effective impact over economy of a country? The answer of all these questions is very clear if one can observe how a mobile phone device can help in the growth of financial system of a country.

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Although there are number of other platforms that are now using by financial institutions to provide their services to their customers on their finger tips for example Online banking or internet banking is one of those tools that are use by financial institutions to facilitate their customers but internet service cannot be use from everywhere now and the devices other than mobile phone that are use for this purpose are not easily portable. Though this service can also be use by a single Mobile phone that a person can easily carry in his pocket. Due to high level of Market potential and Mobile phones positive interaction with financial systems the numbers of innovative products are launching in market related with mobile phones. One of these innovative products that is developed in past few years and which is still in its development phase is Mobile Banking.

2. Literature Review:
Poverty is the root problem of almost of any type of economy. Today almost every country is working to know the Procedures, policies and ways to overcome this major issue. Specially in developing countries it is concern broadly with the economic condition of people as the people who earn less than one dollar a day are comes under the line of poverty so one of the biggest factor which contributes in the increase of poverty is lack of financial availability which further becomes the cause of weak economic condition (Bhavnani, Chiu, Janakiram & Silarszky ,2008). Mostly the people who lives in rural areas are major victims of problem like poverty because as the rural areas are usually remote areas so it becomes a difficult task to provide the financial services in such areas so the people of rural areas are mostly not enable to prevail such services like money transfer, savings etc which is again a cause of poverty (Diga, 2007).

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The increased use of mobile phone and other electronic services is very beneficial for the people are are almost out from the range of financial institutions and are unable to avail the services of mobile banking (Skuse & Cousins, 2007). There are many Pricing models by which we can reduce the cost of services specially the services that are provided by the mobile phone devices (Sey & Fellows, 2008). By using a network of mobile phones the mobile financial services can be provided in rural areas at low costs as its hard to develop the Financial institutions in such remote areas where people even dont have much information about how to avail the financial services. According to Mr. Jensen & Robert in 2007 the easy availability of handsets with basic features and emergence of can be more flexible as compare to other telecommunication devices (Myhr & Nordstrm,2007). Many Researchers have identified a link between mobile banking & economic growth in advanced economies (Colecchia & Schreyer, 2002).The increased telecommunication services further improved the information services and due to increase in information awareness is developed in the society which is also beneficial for the people who live in the rural areas (Roller & Waverman, 2001). The relationship mobile phone financial services is direct with the poverty as if the mobile financial services are developed and a people who are living in sustainable areas have got access to information share by such services like financial services this will be very helpful to decrease the poverty (Roman & Colle, 2002).

3. Background of Mobile Banking:


Reported by the GSM Association (GSMA), 13 million people in these countries now use mobile banking services. An additional quick mobile banking achievement is the M-PESA program introduced by Safaricom, a Vodafone partner, in Kenya in 2007. Currently, M-PESA is the most
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significant mobile banking service in the globe, providing 13 million customers in Kenya, Tanzania, South Africa, and Afghanistan. Mobile banking services are also now functioning in Uganda and Senegal. far more than 40 million folks now use mobile financial services globally.

4. Mobile Banking in Pakistan:


In the developing country like Pakistan, the Mobile Banking is one of the most versatile product that is effecting the economy of Pakistan very positively.In current situation there are two large Mobile Banking services are working successfully in Pakistan i-e Easy Pesa and UBL Omni as stated by SBP. According to State Bank of Pakistan more than 800,000 accounts have been opened in Branchless banking head from which almost every day more than 180,000 transactions take place on daily basis with an average size of 3700RS per transaction (SBP-Statistics). As Stated by the State Bank of Pakistan in their Branchless Banking Regulation there are three types of Models that can be use for the development of mobile banking product. These models are as follows:

I.

One to One Model:

In one to One Model the one Financial institution provides Mobile Banking services by the establishing a collaboration with one particular telecom Company. Here the user of that particular telecom company can only avail this service. The example of this service is Easy Pesa in Pakistan which is currently working under the design of one to one Model according to information given by Telenore Pakistan and Tameer Bank.

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One Bank One Telco

II.

One to many Model:

In One to Many Model one Bank or Financial institute provide mobile banking services by making cooperation with many telecom companies. In Pakistan UBL OMNI is working on the same Model which is making this product one of the most successful Mobile banking Product in Pakistan (SBP).

One Bank Many Telco

III.

Many to Many Model:

State Bank of Pakistan has also permitted many to many model for mobile banking as well but currently there is no product has launched yet on the basis of this model. As in this Model many banks or Financial Institutions provide mobile banking product by collaborating with many telecom companies (SBP)

5. Effects of Mobile Banking in Pakistan:


Mobile banking decreases its client's dependency on cash, an aspect that delivers improved benefit and financial savings possibilities into Pakistani's lifestyles. Cash becomes unwanted for transferring or acquiring money, which decreases the inherent threats of cash handling, such as loss, thievery, or fraudulence. With middlemen squeezed out of the deal equation as a result of Mobile Banking, clients Submitted By Saad Bin Mehmood Page 11

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will experience improved transparency. All of these advantages give customers superior motive to choose mobile banking. Pakistans poor confront two major challenges that financial services can assist address. First, they seem to survive with a excessive level of earnings movements. Financial services can assist erase their cash flow in various methods: by developing a buffer via savings; by raising inflow via remittances; and by acquiring lump sums of money via savings and credit that can be utilized to control significant expenditures as they arise. (B&G survey)

I.

Mobile Banking & New Employment Generation:

Enhanced accessibility to finance encourages businesses and new jobs. According to World Bank study a 1 percent raise in financial inclusion refers to a 0.51 percent enhancement in business enterprise creation, and a 15 percent inclusion raise brings to jobs expansion of 1 percent. By 2020, if Cellular economical services utilization via Cellular Financial Products will increases the economical addition by 20 %, up to 600,000 new Businesses could be create,

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leading to 1 million new jobs an employment increase of 1.3 percent. This is the equivalent of new jobs for 1 out of every 10 currently unemployed Pakistani.

II.

Mobile Banking & Tax Earnings Growth:

The advantages of the economic growth triggered by financial services by means of Mobile Banking will enhance tax earnings, as well. Corporate and business taxes will increase as a outcome of new business generation together the Mobile financial Services value chain, increasing profits within current companies thanks to savings from Mobile financial services and business expansions made feasible by Mobile Banking. This business enhancement and creation will produce new employment, which signify improved worker income taxes. Mobile banking financial services could therefore add US$2 billion annually to Pakistans government revenues by 2020 which means an increase of 3 percent.

III.

Mobile Banking As a Tools for Government:

Mobile financial services by Mobile Banking can provide a particular edge as an effective payment tool for federal wellbeing. The present procedure includes paying by checks or cash, and generating utilization of offline items of service. Such cash obligations and financial aids added the administration with substantial costs and issues, such as probable delays, leakages, and possibility of corruption by middle men. To open up personal bank accounts for recipients would trigger these complications to decline. Mobile banking would deliver receivers with immediate accessibility via electronic identity and mobile accounts. They would obtain their contentment and subsidy payments instantaneously, at reduced cost, with no possibility of leakages. Like Telenor Easypaisa and UBL Omni. Furthermore, mobile banking would motivate the growth of
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e-government services, benefitting both government and citizenry with a user-friendly system that would assist in payments and ID solutions cost efficiently. Canada has executed this sort of a program and has preserved US$9 per inhabitant on public services yearly, with high customer achievement. In 2005, that nation launched mobile services meant to improve the delivery of government plans and services to Canadians. The plan handles desires for Social Security numbers and passport and credit apps, and it also disburses tax and social security payments. It has supplied customers with a quicker and much easier way to admittance government services, even those in non-urban and distant destinations.

IV.

Mobile Banking & its effect on Firms, Merchants, and Middlemen:

The usage of mobile financial services by Mobile banking can reduce admin expenses for firms. A lot of companies, like utility companies, expend considerable time and money on the operations and processing of paper bills. Including electronic invoices and reporting can minimize expenditures and enhance velocity and reliability, lessening invalid costs for debts, for instance. In addition, Mobile banking will improve transaction speeds and reduce outstanding credit times, minimizing how long it takes to collect and find out after payments. A by-product of firms diminished management responsibilities is an enhancement in the movement of clients and income to over-the-counter Mobile banking providers. The merchants who acquire on these jobs will benefit from the expanding revenue of financial services, greater income from the sales of common goods, and an enhanced societal status as a outcome of their function. In Mobile Banking some middlemen have been based on the transportation of money for remittances and payments, and some have worked as money collectors for informal savings and credit systems. Thus new chances will develop such as employment for official banking agents for those ready to be properly trained and certified. A extensive chain of Easy paisa and Omni Agents in
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operating as a Middleman in Pakistan for offering mobile banking services to clients largely transfer of remittances and obligations of bills.

V.

Effect of Mobile Banking on Society:

The usage of mobile financial services can assist & aid the accomplishment of Pakistans sociable improvement objectives. The progress of the nation's technological facilities mobile phone, Internet, and, thus, Financial Services via Mobile Banking will be at the origin of the progression of outlying society, education, health care, gender equality, and transparency. As these enhancements take place, human capital and economical growth will flourish, as will upgrades in the equality of opportunity and income. Mobile banking can assist the growth that brings to a better quality of lifestyle by means of a lot more equitable economic growth, supporting Pakistan address some of the social goals of its Five-Year Plan (2010 to 2015) and Vision 2030.

6. Mobile Banking Products in Pakistan:


Following are some successful mobile banking products in Pakistan:

I.

Easy Pesa:

Easy Paisa is 1st Mobile Banking product that was launched in October 2009 in Pakistan. Initially it had 2500 Outlets but now they are expanded to more than 12000 outlets throughout the country. It is a joint product of Telenor and Tameer Micro Finance Bank. The innovative product Easy paisa under the umbrella of mobile banking is a most convenient and easy way to transfer money across Pakistan and includes international remittance facility from more than 80 countries with collaboration with Xpress Money. Furthermore an Easypaisa also provides a vast field of banking services. The Easypaisa Mobile Banking structure is based on One to One business Model.
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a. Mobile Account services:

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Telenor Easy Paisa is providing the following Services under the umbrella of Mobile Banking:

Money Transfer Bill Payment International Home Transfer Easy Load Donations

b. Easypaisa Money Transfer:

Easypaisa also provide Money transfer services through its More than 12000 outlets.Any person with a need to send money from one city to another can use this service from any Easypaisa shop. It is not necessary for the customer to be a Telenor subscriber in order to avail this service. Some features of this service are given as follows: Any person with a valid NADRA CNIC can send money or receive money This service is not limited to Telenor subscribers; other mobile network subscribers can also use this service There is no paper work or form filling required An instant SMS message will be sent to both the Sender and the Receiver on sending/receiving money Sending/Receiving can be done from 12000+ of Easypaisa shops all over Pakistan No more waiting in long lines Money Transfer can be done even at late hours
c. Bill Payments:

Easypaisa Also providing bill payment services in Pakistan due to this amazing and convenient facility anyone can pay Electricity, Gas, Telephone, Water and Internet bills in a very secure way through any Easypaisa outlet without paying any extra charges.
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d. Other Services:

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Easypaisa also provide some other financial services as well to its customers for these services are as follows: Easy Load Easy Pay Donations

II.

UBL OMNI:

UBL Omni is Basically Branchless banking product but it also provides Mobile Banking Facilities to its Customers. It is a product of United Bank private limited which is one of the largest banks with 1200+ branches operating in Pakistan. In 2005 UBL launched its first Mobile Banking product named as Mobile Wallet under the brand name of Orion. UBL Omni was launched in Pakistan on 19th April 2010. UBL Omni is providing the host of banking services to customers nearest "Dukaan". These UBL Omni Dukaans are located in more than 650 Cities and Towns in Pakistan. There are more than 6500 Retail agents of UBL Omni working in various cities and towns. In current Market UBL Omni is the 2nd largest Brand that is providing various mobile banking services to customers. UBL Omni is based on One to many Business Model.
a. Account Opening:

UBL Omni Also Provides the Account opening services to its Customers. Any Customer who wants to open his account can do so just by visiting any UBL Omni Dukaan. Omni Converts the mobile number of Account opener in to his/her Account number and after opening an Omni Account the customer can easily operate his/her account not only from a wide number of UBL Omni Dukaan but also from any UBL Branch as well. A UBL Omni Account holder can enjoy all the basic Banking services on his/her fingertips and perform transaction 24/7 from anywhere in Pakistan.
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b. Money Transfer:

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UBL Omni is also providing Money transfer services to its customers which means that like Easy paisa, anyone can transfer money immediately in all over the Pakistan. As UBL Omni is still in its initial phase so currently money transfer services are limited to domestic remittances only. Anyone can visit his/her nearby UBL Omni Dukaan with his/her original and a copy of CNIC along with CNIC number of the recipient and send money instantly with complete peace of mind backed by the financial security of UBL.
c. Bill Payments:

UBL Omni also providing one of the most basic banking services to its customers through Mobile phone, which has made their lives more easy and comfortable now , there is no need to stand in queues and wait to submit utility bills and there is no need to submit utility bills in bank working hours. Anyone can pay his/her utility bills including Electricity, Gas, Internet and even Mobile services bills by visiting any nearby UBL Omni Dukaan without any extra charges. This service is available for everyone.
d. Other Services:

The Mobile Financial services that are offered by UBL Omni are as follows: Purchase Mobile Voucher SMS Banking Services Donations

III.

UPayments:

Recently, Habib Bank Limited, Summit Bank and Ufone jointly started a mobile phone based banking services to Ufone customers to have their bank accounts in HBL which can be operated through mobile phones having Ufone. This Mobile Banking service is not as much wider as UBL

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Omni and Easypaisa are. The Business model of this Mobile Banking Product is based on One to Many.

IV.

MCB Mobile Banking:

Another Mobile Banking Product that was launched in Pakistan by Muslim Commercial Bank in June or July 2009 is MCB Mobile Banking. MCB Mobile Banking is very much like Online banking through Mobile phone through GPRS Service. MCB has developed an entire GUI for its Mobile Banking customers which can be operated by any internet enable Mobile phone. Its Scope is bit narrow as it is available for only MCB ATM Card holders. MCB also won MMT Award (The Best Bank Led Mobile Money Transfer Program) in October 2010 as in less than 15 months since it launched its customers used the service had conducted nearly 2 million transactions worth over PKR 3 billion. MCBs globally recognized and award nominated mobile payments service allows existing account holders at MCB to conduct both non financial and financial transactions. MCBs globally recognized and award nominated mobile payments service allows existing account holders at MCB to conduct both non financial and financial transactions such as: Balance Inquiry Mini Statements (last 6 transactions) funds Transfer to any MCB account Utility Bill Payments Pay MCB Visa Credit Card Bills Maintain Favorites Make donations to charities
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a. Balance Inquiry:

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The existing customers of MCB Mobile banking can easily check their Account Balances by logging in to the MCB mobile banking Application through their Mobile Phones by Using GPRS services of their network operators. There is no time restriction as this service can be use 24hrs a day.

b. Mini Statements:

MCB Mobile banking customer can also get access through his/her mobile phone to his/her Mini Account Statements of last 6 transactions by using MCB mobile Banking Application through GPRS.

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c. Funds Transfer:

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MCB Mobile banking customer can send money to anyone using MCB Mobile Application, by providing the complete 16-digit MCB account number or the 13/16 -digit ATM card number of the beneficiary. It is not essential for beneficiary to be MCB customer. Or in case of beneficiary is also a MCB mobile banking registered customer than funds can also be send to him by using his/her registered Mobile number.

d. Utility Bill Payments:

The registered customers of MCB mobile banking service can also pay their utility bills through their mobile phones. By using this service a customer can not only pay his/her electricity , Gas and other utility bills but also enable to pay his/her Mobile & internet bills as well.

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e. MCB Visa Credit Card Bills Payment:

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MCB Mobile banking customer can make MCB Visa Credit Card payments easily through this service by his/her registered number. Customer has the option of paying a minimum payment, more than minimum or the full amount.

f.

Maintain Favorites:

Registered MCB Mobile users can manage their favorite payees i.e. add or remove utility companies or individual account holders to whom payments and fund transfers are made frequently.
g. Report a Lost ATM card:

Registered MCB Mobile users can report their card as lost or stolen using the service. The ATM card will automatically be de-activated for a period of 24 hours.
h. Other Services:

MCB Mobile Banking service also providing other financial services as well which are as follows: Buy Insurance Make Donations Top up prepaid mobile phones
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Mobile Banking & Pakistan Recharge MCB Visa Prepaid cards

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i.

How to register:

Only MCB ATM card holders are eligible for this service. In order to register for this Service a customer has to follow following procedure:

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7. Comparison among Major Mobile Banking Products In Pakistan:


There are currently four major Mobile Banking Products are available in the markets of Pakistan. The Brief comparisons among these four Mobile Banking products are given in the following table:
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(Source: Internet)

8. Upcoming Mobile Banking Products in Pakistan:


According to the CGAP report Pakistan is one of the fastest developing market for branchless banking in the world. This is the reason that Mobile Banking is also flourishing in the financial market of Pakistan and till now showed very effective results. As mentioned earlier that the two
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Mobile Banking & Pakistan major branchless banking models have emerged in Pakistan Easypaisa by Tameer

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Microfinance Bank and Omni by United Bank Limited and marked a success story with a span of just two years, the combined daily transaction volume of the two services already averages over 175 thousand, with an average size of Rs 3,700. So following figure is extracted from the CGAP report upon Pakistans Branchless Banking market which shows the current and upcoming Mobile and Branchless Banking products:

Mobilink is currently providing MMO service (Mobile Money order Service) with the cooperation of Pakistan Post Office and Providing Basic financial services like funds transfer, deposits, Bills payment services etc. Whereas recently Mobilink also acquired a Microfinance Bank named Waseela Bank to provide mobile banking services like Easypaisa. BankAlfalah will also launch its Mobile banking Service in coming days with the cooperation of Warid Telecom. So in coming few year lots of new innovative Mobile and Branchless banking products will be launched in Pakistans financial Market.

9. Price Comparison Analysis between UBL Omni & Telenore Easy Paisa:
After the analyzing the Fund transfer rates of Both largely used Mobile banking products in Pakistan following table shows price comparison between both product prices in market.

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Slab Start (in Rs) 0 501 1501 4001 7001 10,001 Slab End (in Rs) 500 1500 4000 7000 10,000 15000

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UBL Omni Price Easy Paisa Price (In Rs) (in Rs) 50 Rs.60 80 Rs 60 (500-1000) & Rs 120 (1000-1500) 120 Rs 120 (1500-2000) & Rs 180 (2501-4000) 240 Rs 240 (4001-6000) & Rs 300 (6000-7000) 350 Rs 300 (7000-8000) & Rs 350 ( 8000-10,000) 500 Not Available on Easy Paisa (Ref: UBL Omni Agents)

The above table show the price comparisons between the funds transfer limits and their rates in easy paisa and UBL Omni. From the above table it is easily concluded that easy paisa is an expansive product as compare to UBL Omni. And this might be the cause of quick success for UBL Omni as it was launched just two years ago. But as it is supported by a large commercial bank and its model is also better than easy paisas Model so there it is concluded from the above price analysis that UBL Omni is cheaper than Easy paisa for all of the following amounts:
Rs 0-500 Rs 1000-1500 Rs 1501-2500 2501-4000 4001-6000 6000-7000 8000-10,000 Omni is cheap as it charges only 50 Rs Omni is cheap as it charges only 80 Rs Omni charge Equal to Easy Paisa i-e 120 Rs Omni is cheap as it charges only 120 Rs Omni charge Equal to Easy Paisa i-e 240 Rs Omni is cheap as it charges only 240 Rs Omni charge Equal to Easy Paisa i-e 350 Rs In Addition UBL Omni now offers Remittance up to amount of Rs 15000 (Ref: UBL Omni Agents)

10.SWOT Analysis:
SWOT analyses on Mobile Banking are based on the discussion with different officials and Agents who are related to Mobile Banking Products and services. Following are the SWOT analysis on Mobile banking according to Pakistans Market:

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I.

Strengths:
wants to avail Basic Banking Services can easily get benefits by it in anytime and anywhere in Pakistan.

One of the Main strength of mobile banking is its 24/7 availability. A customer who

Mobile banking products are boosting the performance of banking and financial institutions as banking is now become very convenient and easy to understand. Account opening, Funds transfer and all other such financial services were never available in so easy way on the customers fingers tips as compare to few years before. No need to stand in queues at bank by having mobile banking customer every user can pay all his utility bills just by using his/her Mobile phone which is another strength of Mobile banking. The Overall cost of mobile banking is very Low as it is very beneficial for both Telco and Financial Institute. Another strength of Mobile banking is, its assistance to Government. Government can use it for various purposes for example collection of taxation and distribution of donations like recently done through UBL Omini for the disbursement of Benazir Income Support Program. And one of the most effective strength of mobile banking is that it is considered as one of the most effective tool to cover the large area of unbanked population in Pakistan.

II.

Weaknesses:
chances of fraudulence is always there. Its easy to get pin by fake SMS or Fake Call from the Mobile Banking user.

Mobile Banking is considered to an unsecure way of transaction as there are huge

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Scope of mobile banking is very limited yet as the banking services offer through mobile banking are very much limited for example funds transfer limits are still very low. One of another weakness in Mobile Banking is lack of Awareness among people about these products still hundreds of people can be seen standing in queues in front of banks for number of basic banking services which can be easily acquire through mobile banking. A large portion of Pakistans Population in illiterate which is a reason that though the mobile banking products are still successful but still the level of trust and confidence of people is very low about Mobile Banking products. Another weakness of Mobile banking is its consumer cost. For example for customer who sends money by using funds transfer service have to pay high transfer charges as compare to bank branch.

III.

Opportunities:
population indicates the huge and effective number of opportunities for mobile banking products in Pakistan it proper strategy applied.

More than 102 million of mobile subscribers and only more than 80% of unbanked

The increasing interest and competition among Telecom companies is providing another

opportunity to Mobile Banking products to flourish rapidly.


Over 175 thousands transactions of average 3700 PKR by two large Mobile banking

service providers is indicating an increase in public interest in Mobile banking services.


Large multinational financial companies like VISA are also working on Mobile banking

Products which is also an opportunity.


Government support by using mobile banking services for the disbursement of donations

also shows and opportunity for this product in coming few years.
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IV.

Threats:
these products.

Lack of awareness among people about Mobile Banking can be a threat in long terms for

Intense competition among Mobile banking providers can also be a threat for Mobile banking. Security is one of the biggest threat to mobile banking as most of the people do not consider it a secure way. Hacking and system failure can also be threat for mobile banking. As few years back ufone customers faced extreme problem due to network failure as their main head office got burnt by fire. So proper planning must be needed to impose.

11.Conclusion:
It is concluded that Mobile Banking is not only one the most leading and successful product but it is also an essential for the growth of any developing country especially if we observe in the context of Pakistan it clearly indicates that in future Mobile banking will be a product that will provide a gradual boost to the economy. It will help to create new job opportunities and will be very helpful for various types of not only financial inclusion services but also social services as well. We also discussed almost all current and upcoming mobile banking products that are launched and will be launch in Pakistan. We analyzed the prices of two most successful and pioneer products of mobile banking that are launched successfully in Pakistan and concluded that which product is available on cheap prices. Last but not the least it will not wrong to conclude that Mobile Banking is another name for the future of any successful economy in present world. Mobile banking is an innovation which is helping banks and other financial institutions to achieve which was once consider to be something unachievable, the way it is supporting the
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growth of economy is really very appreciable. The role of Mobile banking as an innovation is leading the developing country like Pakistan to redesign a new and modified of economy. Although there are some hurdles that are slowing down the progress of mobile banking for example lack of awareness, trust and confidence of people but still the growth rate is above the mark. In coming few years it can be estimated and predicted that a large portion of unbanked population will be served not only mobile banking services but also enjoy other financial services as well like insurance, mobile wallet etc. All these signs are actually the evidences of the proof that mobile banking as an innovation today is the future legacy for strong and healthy economies. So as far as Pakistan is concern current performance of mobile banking products is very successful. Currently Telenors Easypaisa is largest mobile banking service product with 12600 outlets which are even more than total commercial bank branches that are working in all over the Pakistan but as it is supported by a microfinance bank named Tameer Bank Ltd so though its current performance is outstanding but on long term UBL Omni is much more successful as it is supported by a commercial bank i-e United Bank Limited. Upayment is also a newly launched mobile banking service which has limited scope till yet as it is performing its operations on small scale by the support of Soneri Bank, Habib Bank and SUMMIT Bank but it is still in its early phase. Mobilink has recently acquired a Microfinance bank i-e Waseela bank to provide complete mobile banking services currently it is working with Paksitan Post office, and MCB to provide mobile banking and financial Services on limited scale. Whereas last year MCB was nominated among the top four best mobile money services category for Global GSMA Mobile Awards. So it may not be wrong to conclude that mobile banking is one of the most leading and effective product not only in present but in future as well.
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12. References: Bhavnani, Asheeta. Chiu, Won-Wai, Rowena. Janakiram, Subramaniam. Silarszky, Peter.(2008). THE ROLE OF MOBILE PHONES IN SUSTAINABLE RURAL POVERTY REDUCTION. GICT. Colecchia, Alessandra. Schreyer, Paul.(2002).The Contribution Of Information And Communication Technologies To Economic Growth In Nine OECD Countries. OECD Economic Studies No. 34, 2002/I. Diga, Kathleen. (2007). Mobile Cell Phones and Poverty Reduction: Technology Spending Patterns and Poverty Level Change among Households in Uganda. International Development Research Centre, Pages: 4. Jensen, Robert. (2007).The Digital Provide: Information Technology, Market Performance and Welfare in the South Indian Fisheries Sector. The Quarterly Journal of economics. Volume CXXII, Issue 3. Pages 879 to 92. Jonas, Myhr. Lars, Nordstrm. (2007).Livelihood Changes Enabled by Mobile Phones: the case of Tanzanian fishermen. Uppsala University, Sweden. Rller, Hendrik, Lars. Waverman, Leonard. (2001). Telecommunications Infrastructure and Economic Development: A Simultaneous Approach. The American Economic Review .Vol. 91 Page 909 of 909-923. R.D. Colle and R. Roman, Challenges for the Tele-center Movement in 2002, in: Tele-centers and ICT for Development: Critical Perspectives and Visions for the Future, R.D. Colle and R. Roman, eds, special theme issue of The Journal of Development Communication 12(2).

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Skuse, Andrew. Cousins, Thomas. (2007).Managing Distance Rural Poverty and the Promise of Communication in Post-Apartheid South Africa. Journal of Asian and African Studies April 2007 vol. 42 no. 2 185-207. Sey, Araba. Fellows, Michelle. (2009).Literature Review on the impact of public access to information and communication Technologies.CIS working Paper No.6. https://www.cia.gov [2012] http://www.dawn.com [2012] http://nextbigfuture.com [2012] http://www.technobuffalo.com [2012] http://www.telecomrecorder.com [2012] http://bankinnovation.info/ [2012] www.easypaisa.com.pk/ [2012] www.mcb.com.pk [2012] www.ufone.com [2012] www.ubl.com.pk/omni/ [2012] www.propakistani.pk/ [2012] http://www.mobilinkworld.com ICT Facts and Figures 2011 [www.ICt.com] http://blogs.cisco.com/cle/mobile-banking-improves-lives-and-economies-in-the-developingworld Safaricom extends M-PESA service to KPLC customers (Press Release) Pakistans Branchless Banking Becomes Model for World by Yasir Ameen

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CIO Pakistan: Mobile Banking market dynamics for Pakistan By Dr Mohammed Yaseen Mobile Phone Technology in Banking System: Its Economic Effect by F.I. Anyasi and P.A. Otubu August 29, 2009 Mobile banking and economic development: Linking adoption, impact, and use Jonathan Donner, Microsoft Research India 2008 Applied Marketing Strategies on Telenor Research report by Sana Munir Building Inclusive Financial System in Pakistan by Dr. Shamshad Akhtar 19th June 2007 How to Send/Receive Money through Easy Paisa 'Money Transfer' Complete Guide By Aamir Attaa Friday, Nov 20, 2009 Easypaisa posts record money transfer by admin at June 18, 2011 [www.propakistani.com] ECONOMIC AND LEGAL CONDITIONS FAVOURABLE FOR MOBILE BANKING PART I April 30, 2010 by Microfinance Africa http://www.mobilinkworld.com ICT Facts and Figures 2011 [www.ICt.com]. M-banking in Pakistan By admin at June 25, 2011. Mobile banking can be challenging for Banking Industry Monday, Sep 7, 2009. Mobile banking in Pakistan a laboratory of innovation by AMER SIAL Thursday, 13 Oct 2011. Mobile banking service with a difference Staff Report []. THE ROLE OF MOBILE PHONES IN SUSTAINABLE RURAL POVERTY REDUCTION June 15, 2008 by Asheeta Bhavnani, Rowena Won-Wai Chiu, Subramaniam Janakiram, Peter Silarszky (TTL). Mobile Banking The Future published on August 2007 Author: Infogile Technol. Mobile phone lifeline for world's poor By Tatum Anderson.
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Mobile banking: Overview of Regulatory framework in emerging markets by Rasheda Sultana, Grameenphone Ltd. TECHNOLOGY IRELAND 09/08 Technology and Innovation Management: Mobile Banking As Business Strategy: Impact Of Mobile Technologies On Customer Behaviour And Its Implications For Banks by Rajnish Tiwari, Stephan Buse, Cornelius Herstatt published on January 2006, Working Paper No. 37 Mobile Banking Technology Options August 2007 The Socio-Economic Impact of Mobile Financial Services April 2011 Nokia Expanding Horizons 01 2008 web2 Mobile Banking Product Overview by Gemalto Security Analysis of Mobile Banking Services in Pakistan By Aqeel Feroze, Asma Basharat Scenarios for Branchless 2020 https://www.cia.gov http://www.dawn.com http://en.wikipedia.org http://nextbigfuture.com http://www.technobuffalo.com http://www.telecomrecorder.com http://bankinnovation.info/

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