How Is Mobile Finance System Inflection Point For Remittance To The Country Like Nepal?

Mobile Finance system is the easiest way to send money to Nepal for expatriates. In this breathtakingly beautiful country, mobile payment has a vital role in empowering the population in various ways for all types of money transactions. Mobile Financial Services (MFS) is a distribution service that provides rural and semi-urban people in Nepal with greater access to financial services. It uses a cell phone to provide retail to micro-retail services (payment facilities, fund receipt, and fund transfer). Financial transactions that can be sent via MFS include essential fund transfers, utility/bill payments, vendor payments, and more specialized commercial items such as microloans, insurance, and remittance.

Why Is Mobile Money Important For Population In Nepal?

Economic development is the primary driver of digital money in Nepal. Only about 33.5 percent of the population of 28.9 million is banked, but there are over 18 million smartphone subscriptions. With an approximate Internet penetration of just 28.9%, mobile phones are a great way to motivate people with financial services. Moving from cash to online money transfers to Nepal, appropriate electronic payments will lower costs while allowing vulnerable and remote people to be reached in ways never before possible.

However, how well this takes off is highly dependent on government, industrial, and development organizations’ activities in transitioning payments to the new instruments. While the Kathmandu region is a banking hotspot, reaching areas beyond the valley has been a problem. While the Nepal Rastra Bank (NRB) has policies in place to promote this (one branch in Kathmandu after three outside the valley), it will take economically viable, alternative, and good digital services to make a money transfer to Nepal and remote area a reality.

What I Branchless Banking And How It Is Helpful For General Public?

Branchless banking is a viable alternative to traditional branch-based banking. It enables banks to provide financial services outside of conventional bank locations through distribution channels such as mobile smartphone applications, debit cards, and QR payments, among others. Branchless banking has the potential to significantly expand financial services to underbanked and unbanked people.

A branchless banking account is intended to serve people from all walks of life. Anyone with a Pakistani CNIC/SNIC can open this account in a few easy steps and gain access to various digital banking services. Branchless banking will enable people to send money to Nepal online using the smartphone application, saving time and money.