Rural Banking

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Rural Banking
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Rural Banking - Background

• Pakistan has great potential in agriculture.
  About 27 of the total 80 million hectares of the
  country is under cultivation. Agriculture
  contributes about 21 of the GDP and employs
  more than 43 of the labour force.
• Total Universe of 8 million Rural Households
• Total Potential as per GDP Rs. 7.0 Trillion
• Paradigm shift in Rural Economy from seasonal to
  perennial cash flow generating activities(tunnel
  farming, Dairy Farming Livestock and Poultry
  Etc.)
• Total deposits Rural Deposits as per SBP (2015)
  550Billion.
• Huge Potential for the growth.
• Extensive Branch Net Work is the key in taping
  that potential.

Source State Bank of Pakistan
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UBL- Rural Banking

• Introduction
• Rural Banking is Oriented towards meeting the
  needs of Specifically Rural Population,
  consisting of Farmers, Agri-laborers, Artisan
  Rural Entrepreneurs
• UBL Rural Banking is a financial inclusion drive
  for bringing rural population to the formal
  banking network. UBL presence in the rural
  communities will help Rural Banking in
  establishing a lasting relationship with rural
  customers.  
• Objective
• The prime objective of UBL Rural Banking will be
  focusing economic and above economic size farmers
  / land holders, small size rural businessmen,
  agriculture based business in the rural areas for
  financial inclusion and low cost deposit
  mobilization.

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Pakistan Fact-File

• Total Population 191 million
• Rural Population 116 million (66)
• Total Rural Households 8 million
• Banked Rural Households 2.2 million
• Rural Share to GDP 51
• Contribution to Labor Force 43.7
• Contribution to Exports 60

75M (34)
116M (66)
77M Adult Rural Population
Huge untapped Rural population chunk, represents
our target market.
2.2M 27.5
5.8M 72.5
Source SBP Economic Survey of Pakistan
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Why Rural Banking is important to UBL?

• Potential of Huge Business Volume
• Comparatively High Margins
• SBP GoP focus

1340 UBL Branches

• Muscle Power
• One of the biggest Commercial Banks in Pakistan
• Foot-Print of 1300 Branches
• Strong brand recognition due to historical
  presence, vast branch network and services
  offered
• Focus on product penetration across all segments
  in particular infrastructure and project finance,
  consumer, agriculture and SME

600 Rural Branches
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Opportunities

• Develop a Rural Specific Marketing Mix
• The NEXT biggest challenge for Pakistani banks is
  to capture the banking business of over 50
  population of 200 million

Marketing Strategies
Conclusion
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Serving Banking Needs of Rural Pakistan
Value Chain Linkages
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UBL- Rural BankingTo meet Financial Needs of
Rural Area customers

• UBL Rural Banking

• Lending
• Microfinance/Small Enterprise Loans
• Kissan Credit Card
• Agri Insurance
• Marketing of Mutual Fund

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Partnering to extend further
30,000 Omni Dukans
116 branches
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Rural Banking

• Market Niche
• Farmers Agro Enterprises
  Households Workers Teachers
  Distribution Facilities
• Wider Consumer Choices
• Insurance Debit / Credit Cards ATMs
  Remittances Cards Mobile Banking

Traditional Needs
New Needs

• Farm loans
• Deposit Services
• Remittances Bill Payments

• Phone Banking
• Branchless/ Third party Services
• ATM Services
• Cards
• Insurance
• Non Farm Loans

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• Thank you