The use of banking agents will help to reduce the operating costs of the sector. The recent development in mobile phone banking is highly encouraging. The expansion in the retail network of microfinance has arisen overwhelmingly from agents and mobile phone channels. Within a span of just two years, there are now almost 18,000 branchless banking outlets surpassing the 10,000 conventional bank branches.
The combined daily transaction volume of the two prominent branchless banking models “Easypaisa” and “Omni” now averages over 175,000, with an average size of Rs. 3,700. As per an independent World Bank – CGAP study, the small size of the transaction indicates enhanced access to finance by the poor and the marginalized unbanked people, an important milestone for financial inclusion.