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Dr. Reza Baqir introduces AMA, which enables the creation of branchless banking accounts

Dr. Reza Baqir, Governor of the State Bank of Pakistan, launched the Asaan Mobile Account (AMA) on December 13 during a launch event held at the SBP headquarters in Karachi. By calling the simple number *2262# on a mobile phone.

AMA allows you to create a branchless banking account. After that, the account user can deposit money into his or her account at any branchless banking agent and utilise it for mobile phone transactions. AMA is a State Bank of Pakistan (SBP) programme aimed at achieving the National Financial Inclusion Strategy (NFIS) goal of fostering digital financial inclusion in Pakistan. PTA, NADRA, Branchless Banking (BB) Providers, Cellular Mobile Operators (CMOs), and Virtual Remittance Gateway have all lent their support to the establishment of AMA (VRG). Under the laws for mobile banking interoperability, VRG has been jointly licenced by SBP and PTA.

Also read: MMBL collaborates with VRG to provide self-service banking to non-smartphone consumers. Using the USSD (Unstructured Supplementary Service Data) channel

The launch ceremony was chaired by Dr. Reza Baqir, Governor SBP and addressed by Ms. Sima Kamil, Deputy Governor SBP, Chairman PTA Major General (R) Amir Azeem Bajwa HI (M), Chairman NADRA Mr. Muhammad Tariq Malik and Mr. Ikram Sehgal, Chairman VRG. The ceremony also witnessed signing of a Memorandum of Understanding (MoU) among 13 branchless banking service providers. The MoU was signed to affirm their commitment in facilitating customers through continued collaboration for more innovations in line with NFIS vision.

While speaking on the occasion, Dr. Reza Baqir thanked the stakeholders for their contributions that culminated into the successful launch of the AMA initiative. He said that AMA is expected to bring a significant increase in bank account opening and the lack of internet access or proximity to branchless banking outlets/bank branches would no longer be barriers for Pakistanis to access financial services. Accounts can now be opened simply by dialing a USSD code *2262# from any mobile phone (smart or simple feature phone) through any mobile network, without requiring internet connectivity. Customers will have the choice to choose from any of the 13 branchless banking service providers that are currently offering AMA.

Governor Baqir highlighted that the AMA would play an important role in enhancing digital access and use of formal financial services in the country. He added that Pakistan has over 187 million biometrically verified mobile subscribers with Tele-density of around 85%, however; there are only 106 million 3G/4G subscribers with mobile internet penetration standing at 48%. This gives us the potential market of around 81 million mobile subscribers which don’t have access to internet and could become users of AMA if provided with the right value proposition.

Also read: Administrator Karachi has interactive session with Banking and Corporate sectors

AMA will particularly help low income segments with non-digital phones and no access to internet to enjoy banking as it offers a simpler process, such as dialing a code, to avail financial services. Moreover, AMA will be a highly suitable platform to onboard Pakistani women customer segments as well since they face greater obstacles in accessing formal financial services due to mobility, cultural and documentation issues. AMA with its ease of use will be instrumental in bringing the next 50 million Pakistanis under the banking ambit.

This initiative is also in line with Government of Pakistan’s holistic approach of “Digital Pakistan” initiative to enhance access & connectivity, digital infrastructure, and innovation. Now, the Government will also have the option to use this channel for disbursing money under the flagship poverty alleviation Ehsaas Program to reach 15 million beneficiaries.

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