solutions to their basic needs ”. regulatory approach has played a fundamental role in the development of branchless banking. the issuance of branchless banking regulations in 2008 was an outcome of sbp ’ s vision and strategy to develop a road map for financial inclusion through the use of mobile phone banking. with these regulations, sbp enabled a diverse set of players including banks, microfinance banks, mobile network operators ( mnos ), retailers, and technology firms to develop partnerships and business models, while safeguarding stability of the banking and payment system, and interest of customers. in accordance with these objectives, sbp allowed only the bank - led model for undertaking branchless banking. at that time, many thought that this was a “ restrictive ” approach, and would not work out. they were proved wrong by the subsequent phenomenal growth of branchless banking in pakistan. as bis central bankers ’ speeches a result of our market developments, sbp ’ s regulatory approach and experience was cited as an example for other countries to follow. according to a recent cgap publication, “ pakistan serves as an example of how public and private institutions together can move a country towards a digital financially inclusive system ”. the report further notes that “ government and public actors have created the enabling environment and provided seed funding, while private actors are developing the infrastructure, services and a long - term business case ”. since the issuance of branchless banking regulations in 2008, several branchless banking models have been deployed. ubl ’ s omni and tameer bank ’ s easypaisa have already gained substantial ground and have established themselves as market leaders. two new services ( mobicash and timepey ) have just launched while two are running live pilots. moreover, all the four mobile network operators in partnership with some of the largest banks have already launched their branchless banking services or are at the final stages of launching. as a result, the branchless banking current growth trajectory is expected to get further steeper in the years ahead. with the entrance of new and strong players, branchless banking has already seen acceleration. the number of agent network servicing branchless banking customers has reached 42, 000. therefore, the basic financial services can now be accessed in the remotest parts of the country through any of these agents. a total of 194 million transactions have been carried out worth 813 billion rupees. more than 2 million m - wallets have been opened till date, and these numbers will improve significantly

these innovative payment solutions is critical. a single failure of branchless banking deployment can erode the public ’ s confidence in the system which in turn may jeopardize the whole sector. being fully cognizant of the risk factors involved in such unconventional modes of banking, sbp has been proactively monitoring developments and associated risks both at system and entity level in order to take appropriate corrective measures in a timely manner. we must acknowledge that branchless banking has gained critical mass in a short period of time. i believe that the market has to start shifting transactions from first generational services ( person - to - person / bills payments ) to second generational services ( account - toaccount and inter - bank transfer ). the players need to expand their product portfolio by offering new products and services for their target market. in my view, this is part of an inevitable evolution which will ensure the long - term sustainable development of the sector, encourage micro savings and help in meeting the demands for inclusive financial services of the target market. let me mention that sbp is working closely with key stakeholders of the mobile and branchless banking industry. we have already constituted a national consultative group and its various working groups to develop a common understanding on the challenges and develop a proposal for policy actions. sbp will continue its engagement with the stakeholders to identify and undertake all necessary measures for developing an eco - system that would not only support mobile banking but would also contribute to the wider economy. i trust that today ’ s conference will help us understand the various issues relating to the growth of mobile banking systems and products, and m - commerce. as this conference is meant to create awareness on mobile commerce, we understand that developments in m - banking and m - commerce will lead us to connect the unbanked segment of our population to financial services, thus contributing to their empowerment. thank you all for being part of this forum and i look forward to your productive participation today. thank you. bis central bankers ’ speeches