60pc bank accounts used only as ‘mailboxes’
KARACHI: Six out of 10 bank accounts across Pakistan are being used just once a month — for accepting a single payment, paid-in and one single ‘cash-out’ transaction each month.
According to a new research from the Insight2Impact (i2i), almost one in 10 accounts in Pakistan is never used at all.
Researchers at i2i describe the single payment accounts as ‘mailboxes’ and challenge the notion that simply owning a bank account equates to financial inclusion.
True financial inclusion is when low-income individuals derive tangible value from services offered by the financial sector, and where livelihoods and welfare are therefore enhanced, researchers argue.
The i2i researchers believe there should be a more sophisticated way of measuring financial inclusion policies, with a focus on how people actually use financial services, like bank accounts.
A team of experts from i2i will be discussing these challenges with policymakers, regulators and other data experts in Islamabad next week.
They will urge finance ministry officials, the State Bank and financial service providers to focus on multiple datasets and modernise data collection.
The i2i is a leading global resource centre for financial inclusion data. It is jointly hosted by Cenfri and FinMark Trust and funded by the Bill & Melinda Gates Foundation in partnership with The MasterCard Foundation.
Published in Dawn October 27th, 2016