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A recent report by the Asian Development Bank (ADB) has revealed that only 21 percent of Pakistan’s population has access to formal banking services, highlighting that a majority of women in the country don’t have any bank account.
The study focuses on digital banking in Pakistan and emphasizes that mobile banking can play a crucial role in expanding financial inclusion.
By leveraging mobile banking solutions, financial institutions can provide banking access to a larger portion of the population, particularly in remote and underserved areas.
According to the report, Pakistan has only 10.8 commercial bank branches per 100,000 adults, a figure that is significantly lower than in other countries in the region.
Despite this, the number of bank accounts in the country has increased by 127 percent over the past five years, reaching a total of 90 million.
Digital banking and online transactions have also seen remarkable growth.
In February 2020, only 17 percent of transactions were conducted online, but by September 2024, this figure had risen to 75 percent.
The introduction of the Raast instant payment system has further accelerated digital transactions, with an average of 300,000 transactions processed daily.
Pakistan’s retail sector, consisting of 2.5 million businesses, presents huge opportunities for digital payments. However, the report notes that only 4 percent of total tax payments come from the retail sector, indicating room for further financial integration.
With low banking penetration but rapid digital adoption, experts believe that mobile banking and fintech solutions could be the key drivers of financial inclusion in Pakistan.
By promoting digital payment systems and mobile banking, the country can bridge the financial gap and bring more people into the formal banking system.
