Home Business The National bank of Pakistan, reaching new heights

The National bank of Pakistan, reaching new heights


News Analysis |

The National Bank of Pakistan (NBP) has signed two Memorandum of Understanding with Mobi Direct, enabling NBP to become a consortium member and settlement bank and for using Mobi Direct’s digital Products, as per a press release issued by the organization. Addressing the event that took place in Islamabad, Mr. Saeed Ahmad, the President NBP said that he is very optimistic about this initiative and said that this arrangement will go a long way in fulfilling aspirations and expectations of NBP customers and account holders and will help National Bank of Pakistan in rolling out various digital products and services in future through this arrangement.

The President stressed upon achieving complete auto administration or “E-governance” through this initiative which is ‘the key to success for all types of businesses’. The NBP, the President said, is assisting all the provincial governments in digitalizing their various payments, fee, and taxes collection systems. He also mentioned that the NBP has already inked MoUs and agreements with various provincial and federal departments for digitally collecting their fee and payments including Directorate General of Immigration & Passports, Bureau of Emigration and Overseas Employment, Public Service Commission KPK, Islamabad Traffic Police, Driving License Sindh and Dealer Vehicle Registration System (DVRS) and collection of e-Tax in Punjab.

Mobi Direct is a Special Purpose Vehicle formed with the help of a select group of professionals having expertise in diversified businesses, for the assistance and development of the financial network in the rural economy.

Saeed Ahmad further stated that after signing these arrangements, National Bank of Pakistan will be able to utilize Mobi Direct payment processing and transactions switching infrastructure, online payment gateway and shared agent network for promoting nationwide branchless banking and digital payments services to provide real growth to an unbanked segment of the population. National Bank of Pakistan will act as a “Settlement bank” for Mobi Direct’s digital payment system and for all of Mobi Direct’s consortium members and stakeholders, the press release told.

Mobi Direct is a Special Purpose Vehicle formed with the help of a select group of professionals having expertise in diversified businesses, for the assistance and development of the financial network in the rural economy. It also provides digital services and advisory. Pakistan is among the very few countries that have one of the largest unbanked and underserved populations, despite a strong banking presence, a sizeable portion of economic activity remains outside banking and financial network, keeping the benefits of banking from the reach of the common man.

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Since the world dynamics are changing, most of the leading banks in Pakistan have stepped towards having a digital footprint, the automation of National Bank which caters to the government’s billing and tax collection requirements is a significant leap. It will not only be the driver of success for the bank but will also enable users to perform transactions and pay dues more effectively on a national scale.

NBP already operates digitally on provincial levels covering various subjects. As recently as in June 2018, The National Bank of Pakistan signed an agreement with Baluchistan’s Excise, Taxation, and Anti-Narcotics department for the automation of tax collection system across the province, in collaboration with another direct-cash service.

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The agreement was signed by Muhammad Farooq, NBP’s Executive Vice President, Payment Services and Digital Banking Group and Fateh Muhammad Khajak, Director General Excise, Taxation and Anti-Narcotics Baluchistan. The NBP President, Saeed Ahmad and Baluchistan’s Secretary Excise and Taxation, Zafar Ali Shah Bukhari were also present at the occasion.