The number of mobile banking users has increased by over 4.5 times in the past four years. “Some 8.34 million Nepalis have access to mobile banking services – a fivefold jump compared to four years ago from 1.75 million to 8.34 million – as of mid-October,” according to a report of the central bank.
An expanding number of smartphone users and increased coverage of 3G and 4G services are attributed to the sharp rise in the number of mobile banking and internet banking users, read the report ‘Situation of Access to Finance in Nepal 2019,’ launched today.
Though, Nepal Telecommunications Authority (NTA) records, however, reveal that the number of mobile internet users has jumped to 14.65 million as of April 2019, the internet banking users stand at only 917,344. “Some 168,307 Nepalis use branchless banking. Likewise, there are some 1,530 branchless banking,” according to the report.
The rising popularity of mobile banking – a service provided by banks that allow clients to conduct financial transactions remotely using a smartphone – has also helped increase the number of mobile banking users. Banks are competing by focusing on new technologies to provide different and easier services to their clients also due to easy access of smartphones and internet connectivity. But there is security concern about mobile banking as well as other banking services that use modern technology. In September, five Chinese nationals were arrested for stealing Rs 12.6 million from several ATMs of the Kathmandu Valley, causing people to be concerned about security features of modern banking services. Due to security concern, the central bank has fixed limit on transaction through mobile or internet. The central bank has set limits of transaction through mobile or Internet. “Only Rs 5,000 can be transacted through mobile banking at one time,” according to the new directives that dictates the weekly and monthly transactions of Rs 10,000 and Rs 50,000, respectively.
But mobile banking has become very convenient for people – especially for household purposes – and getting popular due to its convenient features. Though the expansion of branches – particularly in rural areas – and increasing use of technologies like mobile apps have helped increase the number of users of mobile and internet banking in recent days, the numbers of people using ATM, internet banking, credit card, and debit card have also significantly increased.
“There are 6.7 million people holding ATM cards, up from 4.13 million people six years ago,” the report reads, adding that some 123,146 people have credit cards, up from 57,898 card holders in 2014. “The number of ATM outlets across the country has doubled to 3,316 in the last six years.”
There are 27.8 million deposit accounts and 1.44 million credit accounts of individuals, according to the report. “As of mid-October, banks had enrolled 168,307 customers from their branchless banking outlets in 1,530 locations.”
Despite the rapid progress in the banking sector, some 14 – out of the total 753 – local units in the country still have no bank branches, though central bank has asked the commercial banks to open a branch in each of the 753 local units across the country.
“The bank branches are crowded in Kathmandu as in Province 3, one banking branch serves 2,770 people, whereas in Karnali Province, there is one banking branch for every 4,958 person, and in Sudur Pashchim Province, one banking branch serves 4,409 people,” the report reveals, adding that in Province 5, access to commercial banks has reached all local levels. “Six local units in Sudur Pashchim Province are still have no banks, whereas one local unit each in Province 1 and Gandaki Province lack access to banking and Province 2, Province 3 and Karnali Province have three unbanked local units each.
According to the report, some 60.9 per cent of Nepali population of 29.6 million now has banking access.
An expanding number of smartphone users and increased coverage of 3G and 4G services are attributed to the sharp rise in the number of mobile banking and internet banking users, read the report ‘Situation of Access to Finance in Nepal 2019,’ launched today.
Though, Nepal Telecommunications Authority (NTA) records, however, reveal that the number of mobile internet users has jumped to 14.65 million as of April 2019, the internet banking users stand at only 917,344. “Some 168,307 Nepalis use branchless banking. Likewise, there are some 1,530 branchless banking,” according to the report.
The rising popularity of mobile banking – a service provided by banks that allow clients to conduct financial transactions remotely using a smartphone – has also helped increase the number of mobile banking users. Banks are competing by focusing on new technologies to provide different and easier services to their clients also due to easy access of smartphones and internet connectivity. But there is security concern about mobile banking as well as other banking services that use modern technology. In September, five Chinese nationals were arrested for stealing Rs 12.6 million from several ATMs of the Kathmandu Valley, causing people to be concerned about security features of modern banking services. Due to security concern, the central bank has fixed limit on transaction through mobile or internet. The central bank has set limits of transaction through mobile or Internet. “Only Rs 5,000 can be transacted through mobile banking at one time,” according to the new directives that dictates the weekly and monthly transactions of Rs 10,000 and Rs 50,000, respectively.
But mobile banking has become very convenient for people – especially for household purposes – and getting popular due to its convenient features. Though the expansion of branches – particularly in rural areas – and increasing use of technologies like mobile apps have helped increase the number of users of mobile and internet banking in recent days, the numbers of people using ATM, internet banking, credit card, and debit card have also significantly increased.
“There are 6.7 million people holding ATM cards, up from 4.13 million people six years ago,” the report reads, adding that some 123,146 people have credit cards, up from 57,898 card holders in 2014. “The number of ATM outlets across the country has doubled to 3,316 in the last six years.”
There are 27.8 million deposit accounts and 1.44 million credit accounts of individuals, according to the report. “As of mid-October, banks had enrolled 168,307 customers from their branchless banking outlets in 1,530 locations.”
Despite the rapid progress in the banking sector, some 14 – out of the total 753 – local units in the country still have no bank branches, though central bank has asked the commercial banks to open a branch in each of the 753 local units across the country.
“The bank branches are crowded in Kathmandu as in Province 3, one banking branch serves 2,770 people, whereas in Karnali Province, there is one banking branch for every 4,958 person, and in Sudur Pashchim Province, one banking branch serves 4,409 people,” the report reveals, adding that in Province 5, access to commercial banks has reached all local levels. “Six local units in Sudur Pashchim Province are still have no banks, whereas one local unit each in Province 1 and Gandaki Province lack access to banking and Province 2, Province 3 and Karnali Province have three unbanked local units each.
According to the report, some 60.9 per cent of Nepali population of 29.6 million now has banking access.
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