Tameer Microfinance Bank has lost the significant account of pension disbursement of EOBI (Employees Old Age Beneficiaries Institution) after Bank Alfalah won the contract in the recent bidding process.
Sources in EOBI told ProPakistani that as many as 53,000 EOBI pensioners will receive pensions from Bank Alfalah after next three months which will include no ATM fees.
According to an estimate, the minimum pension of Rs 5,025 disbursed among 53,000 pensioners comes out to a total of Rs 266.3 million. Against supposed service charges of Rs 28 per transaction, the account used to generate Easypaisa a Rs 1.484 million per month in service charges only.
Not to mention, the pension amount varies and increases when it comes to official grading of private corporations and contribution of employees and employers in the fund. Hence, total disbursement amount and profit margins are more than the just the service charges.
It maybe recalled that Tameer Microfinance Bank had been providing services to EOBI beneficiaries since 2011 through retail outlets of branchless banking and branches situated in far-flung areas of the country. Telenor’s bank failed to win the contract again because of the service level and charges which were comparatively higher than those offered by Bank Alfalah.
Bank Alfalah agreed to charge between Rs 25 and Rs 28 per transaction which is less than the service charges received by Tameer Microfinance Bank.
The access of the EOBI accounts is lucrative for a banking company as it provides a good client base along with revenues from service charges. Besides, it enhances the scope of business of the company through offering various products to a big customer base in accordance with their needs.
The disbursement of pensions to EOBI will not only improve Bank Al Falah’s profit margins but will also enhance its liquidity situation mainly in the branchless banking sector.
At present, the contract is being handled by National Bank of Pakistan (NBP) for the interim period of three months and it will be handed over to Bank Alfalah after completion of transfer of pensioner record from EOBI.
Bank Afalah will also register thumb impressions of pensioners through biometric verification machines installed at various retail outlets of mobile phone companies where the service of branchless banking is also provided.
EOBI has a total of half a million pensioners across the country. Among them, 0.37 million draw pensions as old-age beneficiaries, 0.156 as survivals (relatives of deceased employees) and 80 thousands are those individuals who got injured at work. However, only 53,000 pensioners are entitled to branchless banking channels while rest use NBP’s physical branches for the pension reimbursements.
Bank Alfalah will execute pension disbursement service through branches network of conventional, Islamic and branchless banking. The bank partnered with its sister organization Warid and is operating a branchless banking service with the brand name of Mobile Paisa having retail outlets at more than 2000 places.
According to EOBI officials, the branchless banking service brought immense facilitation to EOBI old-aged beneficiaries for collecting their pensions, mainly those living in small cities.
Further, there is no need for senior citizens to stand in long queues for getting pensions in the specific hours of utility service. Instead they can get their pension anytime from the outlet of branchless banking service.