June 18, 2008	Wednesday	Jamadi-us-Sani 13, 1429

KARACHI, June 17: Experts at a banking and financial technology exhibition, organised by the Dawn Media Group, revealed that Pakistani banks were still relying heavily on manual work despite availability of high-tech solutions.

These solutions are being utilised in over 100 countries for more than a decade, they said, adding not a single Pakistani bank was using banking solutions to resolve the problem of stuck-up money and other transaction-related problems.

Pointing towards the problem of stuck-up amount while using auto-teller machines, experts were of the view that thousands of users have complained about this problem as the machine fails to deliver the amount while the balance-sheet shows the amount as withdrawn.

Due to non-utilisation of banking solutions, they said, customers are suffering as millions of rupees remain stuck up with banks and users run from pillar to post to get back their money.

“This usually happens when you have an ATM card of one bank and you opt to withdraw money from the ATM of another bank. The two banks check this transaction manually which takes time and causes missing transactions,” said Akhlaq-ur-Rehman, General Manager, AMFCO International, a communications company. The company provides solutions to resolve the back-office problems, including the stuck-up money and problems related to credit cards.

Not a single Pakistani bank uses this technology and the solution sellers find great potential for growth.

The company received positive response from a number of Pakistani banks. The solutions are used world over, including India.

Similarly, risk management solution (ACI Proactive Risk Manager) is also not in use of Pakistani banks which may help banks check money-laundering, according to a representative of the company.

He said when a customer deposits money; the Risk Manager provides all data related to customer and the possible origin of money.

An importer and seller of American credit and debit card machines stated that this year alone his company sold 70,000 machines. Of these, 17,000 were sold in Karachi alone, he said, adding each machine costs around $200.

Moreover, it was stated that shops have geared up their efforts to accept more and more machines to encourage card holdings and this rapid increase would ultimately benefit banks that provide cash at a very high rate of 35 to 40 per cent.

A number of companies importing such machines from the US and selling them locally were hopeful of enlarging their businesses in the coming years.