Karachi, March 28, 2024 – In a bid to enhance financial inclusivity and streamline digital banking processes, the State Bank of Pakistan (SBP) announced on Thursday a temporary waiver of biometric verification for Asaan Mobile Accounts (AMAs), marking a significant move towards facilitating easier access to financial services, particularly for women.
The SBP, through a circular, mandated that banks and microfinance banks conduct ‘Call Back Confirmation (CBC)’ on Asaan Mobile Accounts (AMA) within 30 days from opening, instead of the previously required biometric verification within 60 days. This adjustment aims to simplify the onboarding process for AMA customers, allowing them to swiftly access financial services through digital channels.
This waiver not only ensures a smoother experience for customers but also aligns with the broader goal of promoting financial inclusion in Pakistan. By reducing bureaucratic hurdles and embracing digital solutions, the SBP seeks to empower individuals, especially those from underserved communities, to engage more actively in the formal financial sector.
Moreover, the SBP instructed banks and microfinance banks to conduct CBC for all AMA customers whose accounts were opened after the temporary waiver lapses on May 10, 2023, and have not undergone biometric verification. This directive underscores the importance of maintaining security protocols while facilitating accessibility, striking a balance between customer convenience and regulatory compliance.
The decision to grant this waiver reflects the evolving landscape of banking in Pakistan, particularly in the realm of Branchless Banking (BB). Branchless Banking offers a cost-effective alternative to traditional branch-based banking, leveraging delivery channels such as retail agents and mobile phones to extend financial services to previously unbanked populations.
Recognizing the potential of BB to bridge the gap in financial access, the SBP introduced regulations in December 2019 to promote its adoption across the country. These regulations aimed to create an enabling regulatory environment for financial institutions and other commercial players to expand their reach and offer services beyond conventional banking premises.
Under this framework, financial institutions, including commercial banks, Islamic banks, and microfinance banks, are encouraged to lead the branchless banking initiative. However, collaboration with telecom companies, technology service providers, and agents is essential for the successful implementation of BB, necessitating clear guidelines and responsibilities for all stakeholders involved.
As Pakistan progresses towards a more digitally inclusive economy, initiatives like the waiver of biometric verification for Asaan Mobile Accounts play a pivotal role in fostering trust in digital financial services. By embracing innovation and adapting regulatory frameworks to meet evolving needs, the SBP aims to pave the way for greater financial empowerment and inclusion for all citizens.
As stakeholders navigate these changes, it is imperative to uphold the principles of transparency, security, and accountability to ensure the continued growth and stability of Pakistan’s financial ecosystem. With concerted efforts from regulators, financial institutions, and technology partners, the vision of a financially inclusive Pakistan is well within reach.
