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Technology has revolutionized every aspect of human life. It has transformed the whole world In
global village. People contact others; make deals while sitting in homes. They exchange ideas,
Participate in conferences, consult doctors and others professionals through internet any time
around the globe. This technology development has broken all social and economic barriers
among the members of society and those all are equal in its use.
Banking was a complex business and only a limited number of wealthy people were its
customers. Too much procedures and personal presence for safe banking, gave limited access to
common man to bank financial services. But technology has changed the dynamics of banking
business also. Now without going any bank branch and without personal presence common man
can get benefit form banking financial services with internet, cell phone and through branchless
banking operator agent. Almost all types of financial services are available like money deposit,
funds transfer, mobile accounts and utility bill payments. The use of branchless banking is easy
and convenient as no paper, no account is required. Only a mobile number is required for
branchless banking. There is no limit of deposit and withdrawal of money and small overhead
charges. Third World countries are the major beneficiaries of branchless banking.
This service was launched in United Kingdom in 1989 with the name of First Direct. In Kenya
more than 700 million people are using branchless banking financial services. In South Africa
and Philippines this banking is also growing day by day and empowering the communities in
managing their financial affairs on their door step with ease and saving transportation cost and
(Javeria Younus, 2013)
Branchless banking is a distribution channel strategy used for delivering financial services without
relying on bank branches. While the strategy may complement an existing bank branch network for
giving customers a broader range of channels through which they can access financial services,
branchless banking can also be used as a separate channel strategy that entirely forgoes bank
branches. According to a 2011 survey, 62% of respondents said the Internet is their preferred
banking method. Only 20% selected branch banking - a sharp decline compared with 2007 when
40% of respondents preferred to bank at a branch.
(Wikipedia, Dec 2009)
First Direct in the United Kingdom are an early pioneer of this class of service. Launched by the
then-Midland Bank (now part of HSBC) in 1989, first direct's accounts are operated solely via the
Internet, post, or (principally) telephone, and they do not themselves operate any retail branches
(although HSBC branches can be used to make deposits) while at the same time offering a full
range of banking services. Smile are a similar venture, again operating solely via the Internet and
A success story is Pakistans first branchless banking solution, Easypaisa, launched jointly by
Telenor Pakistan and Tameer Microfinance Bank in October 2009 after Tameer Microfinance Bank
received the license from the State Bank of Pakistan in 2008. Committed to providing financial
inclusion to the people of Pakistan, easypaisa shops are present at over 22,000 outlets in more than
750 cities and towns in the country. Nearly 4 million unique users use easypaisa services every
month for basic financial services like Utility Bill Payments, Money Transfer and Mobile Accounts.
Around 117 million transactions worth over Rs. 261 billion have been carried out through Easypaisa
since launch
How branchless banking works?

Permissible Models for Branchless Banking

One-to-one (1-1) Model
In this model one bank offers mobile phone banking services in collaboration with a specific Telco
.As a consequence, the services may only be offered to customers using mobile connection of that
specific telco. The example of this model is Easy Paisa It may be noted that one-to-one model does not
necessarily require exclusivity. Therefore, one bank can have several one-to-one arrangements with many telcos or
alternately, one telco can haveseveral one-to-one arrangements with many banks.