Incentive and coordination issues in the mobile banking industry of Pakistan

With the introduction of Branch less Banking regulations in 2008 by the State Bank of Pakistan a new opportunity for banks and telecoms was created to service the needs of the 85% of Pakistanis who lacked any formal or informal access to Financial Services. The first mover in this space was easypaisa, formed when a telecom company bought a microfinance bank. Its enormous success in the Utility Bill Payments and Domestic Remittances space attracted several other players to rush into the market with their own business models. These models varied in their choice of collaboration, from telecoms buying the bank outright to go-alone solutions by some banks. This thesis explores the coordination and incentive issues that may arise from the different types of collaborations between Telecoms and Banks to address this opportunity. The study also looks at the distribution channels for these firms and identifies some of the challenges the design of channels may result in. The thesis ends by making some recommendations on how these frictions and tensions may be minimized.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2014

Author dc:creator

• Ali, Tughral Turab

Advisor dc:contributor.advisor

• Duncan Simester.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/90231

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/90231