Habib Bank Limited has introduced Islamic branchless banking in order to increase banking service absorption in the lower-income group with limited financial needs.
This is any bank’s second attempt to launch an Islamic version of branchless banking. Previously, Meezan Bank, in collaboration with Ufone, attempted to introduce the world’s first Islamic branchless banking services, MeezanUpaisa, but it failed due to operational and interest issues.
HBL has launched Konnect, a Sharia-compliant version of branchless banking that is also available as a mobile app that converts a user’s phone number into an account number. Account registration occurs through the app.
Customers could use the branchless banking services to get a variety of services, such as domestic and international remittances with set transaction limits and utility bill payments.
Over 25,000 Islamic accounts have been opened through agent networks in recent weeks, with the bank projecting a total of over 200,000 by the end of 2022.
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In Pakistan, the penetration of Islamic banking has increased significantly over the last ten years. Branchless banking will expand the reach of Islamic banking services in Pakistan.