An economic analysis of mobile banking in Pakistan

Abstract

Around the globe, various initiatives use the mobile phone to provide financial services to those without access to traditional banks. The current trend is that banks and telecommunication companies together are bringing the unbanked people under the financial umbrella through mobile banking. The aim of the current study is to find out the impact of mobile banking on various economic indicators of Pakistan. For this purpose, the current research was conducted in two phases; in the first phase, primary data were collected through a well-structured interview schedule from the users of mobile banking. In the second phase, primary data were collected through structured interviews from the mobile industry financial experts. This study found that mobile banking brings economic benefits for individuals, companies and countries. These economic benefits lead to bigger economic effects such as an increase in GDP growth, more foreign direct investment, remittances, increase in government’s tax base, creates new businesses, employment generation and transparency in transactions. It is concluded that access to finances through mobile banking leads to the country’s GDP and the entrepreneurial activities.