Initial Details of Third Party Mobile Banking Unveiled

We first heard of Third Party Solution for Mobile Banking in November 2009, when Pakistan Telecommunication Authority and State Bank of Pakistan jointly announced the proposed formation of unified regulatory framework for Third Party Solution Provider (TPSP) system for enhancing mobile banking in the country.

During the while, there went various meetings, conferences and announcements regarding the upcoming system. Latest of these was a news that surfaced just last month when Dr. Yaseen, Chairman PTA announced that regulation for Third Party Solution for Mobile Banking will be finalized by year end.

In his recent post on personal blog, Dr. Yaseen has unveiled various details of this third party solution, according to which, a proposition is being reached where all cellular companies will be able to offering mobile banking services to their customers, regardless of the bank these customers have account with.

Meaning that, it won’t be hard for customers to manage their Citi bank accounts (or account in any other bank) with their Ufone connections. And even if they opt for Mobile Number Portability and move to Telenor (or any other network), their Citi Bank account will still be managed by mobile phone, smoothly.

Dr. Yaseen explains this in following words:

Consumers belonging to any bank and mobile operator would have the freedom of managing their finances when and where they want.

This means that all banks and mobile operators would be able to connect with each other resulting in a situation where any bank customer can access their accounts, transfer funds, and interact with all other bank customer using mobile connection.

This system is named as Mobile Payment Service Providers or MPSP.

Check below image for further elaboration:

Block Diagram of the TPS Model


Security is going to remain the primary concern for the regulators. But that would easily be managed by having multiple layered security checks through encrypted SMS channels.

We are yet to hear more details on the system, to get a clearer picture. But for now, we can see this system very useful for the end user, creating more opportunities for both the cellular companies and the banks. At the same time, customer will be more enabled after this with 24/7 access to their bank account from mobile phones.

I am sure this system will be warmly welcomed by all the banks and cellular companies, except of those who have already invested millions of rupees in getting their mobile commerce solutions.

Telenor for instance, has heavily invested (both the money and time) to get its Easypaisa streamlined. They have successfully transacted over Rs. 20 billion with 9.9 million transactions till December 2010.

UBL omni is another notable product, which has gained popularity over the time.

In other words, there might be a slight chance of conflict of interest for both the operators and banks. But again, let’s wait for more details to come in to have a clearer outcome of this proposed third party solution for mobile banking services.

Tech and telecom reporter with over 15 years of experience, he works as founder of ProPakistani.PK

  • The above diagram its not seems to be a regulation I can see its more of solution from 3rd party how they will proposed to connect to each bank.

    In my experience and opinion Its very hard to make integration for 3rd party to integrate with individual bank switch its better if 3rd party can sit on top of 1Link and mnet switch to provide the mobile banking services to every bank.

    Currently similar solution has been developed and deployed by Access group (fundamo) in pakistan where they are integrated with mNet (MCB) & few 1Link bank individually and integrated with few telcos.

    The major challenge is on the execution part the bank dont act as Telco and they are being blamed as laziest institute on the earth. Telco and Bank want the free integration they will not pay any penny and they will ask 3rd parties to come on revenue share and no body will put an investment for launching it. This will die from its own life.

    There is lot to say but i think i will cover this some time in some article on propakistani.


  • I can see RBS, Citi and Standard Chartered signing up in the 1st phase. Let us not expect managing a Meezan bank account if this for a long lone time.

  • Faysal Bank has already took RBS and launched the mobile WAP for banking. CitiBank & Standard Chartered has already WAP portal for their banking and Meezan bank would be the upcoming next. All are independent initiatives and you can see their is no promotion on that service.


  • Well very nice article. I must say that publication like this will create awareness and these steps should have been taken to promote the ICT industry in Pakistan.

  • Well, a nice move indeed towards a more efficient digital financial system. The system would be no doubt very helpful to its end users, but there could arise issues that might be of much impact like ‘conflict of interest’ among the operators and banks.

  • The main concerns regarding this integration will be from SBP, as they still think bank as more safer place even to get information than telcos. If SBP and PTA allows teleco led branchless banking model then we can see something extra ordinary from every telecom. Currently bank led model is applicable thats why every telecom need a bank to partner with to start branchless banking operations..

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