The branchless banking (BB) sector in the country has demonstrated resilience and growth despite economic challenges. According to recent data from the State Bank of Pakistan (SBP), BB transactions continued to surge in the first nine months of CY23. Transaction volumes in the Jul-Sep quarter of 2023 rose by 33 percent year-on-year and 3.4 percent quarter-on-quarter, reaching 2.85 billion transactions overall.
In terms of value, BB transactions surpassed Rs13 trillion in the same period, marking a remarkable 31 percent increase. The Jul-Sep quarter saw transaction values amounting to around Rs4,497 billion, up by 42 percent year-on-year and 2 percent quarter-on-quarter. However, the average customer transaction decreased slightly to Rs4,616 in Jul-Sep 2023, mainly due to inflationary pressures.
The number of active BB users surged to 62.9 million in Jul-Sep 2023, a notable improvement compared to previous perceptions of limited access. This growth contrasts with a 5 percent decline in active BB users in CY22. Additionally, the total number of BB accounts reached 111 million by the end of Sep 2023, up from 97 million at the end of Dec 2022. Active BB accounts represented 56.65 percent of the total in Jul-Sep 2023, compared to 44.25 percent in Apr-Jun 2023 and 44 percent in CY22.
Notably, digital social disbursements are contributing to the increasing share of female BB account holders, particularly in provinces like KP, Sindh, and Punjab. Despite concerns about hyperinflation and rising unemployment, BB transaction growth has remained robust, underscoring the sector’s resilience and adaptability in challenging times.
