Published on June 14th, 2011 | by Babar Bhatti1
Pakistan Scores High in World Economic Forum Report on Mobile Financial Services
The 209 page report titled “The Mobile Financial Services Development Report 2011” can be downloaded from the WEF website here. The report has extensive coverage of Pakistan and overall it praises Pakistan’s institutional strength and market maturity for Mobile Financial Services. I’ve included two charts and a text excerpt from the report in this post. Subsequent posts will provide more detail on the findings and more specific commentary about the assessment for Pakistan.
Here’s the excerpt (from page 30) that provides some background on why Pakistan scores high on MFS compared with other countries and how can these services can be improved.
Although Pakistan lacks some regulatory elements within the MFS regulation subpillar, its institutional environment (which includes elements of regulatory proportionality and consumer protection) scores within the top quintile of the country sample included in this study.
This, combined with the presence of market catalysts such as government disbursements through mobile and robust data collection and monitoring bode well for the increased adoption of mobile financial services in the country. Access to traditional banking
services is relatively low, which could further strengthen the need for a trusted and efficient alternative. To bring mobile financial services within reach of more people, further development of its end-user environment seems vital; individuals appear less literate and empowered to adopt these new services. Agent networks have room to develop as they are characterized by low density and difficulty in the enrollment of new agents.