Title:
ESAF Report - Palestine E-banking
ESAF Report - Palestine E-banking
Paper Type:
Research Papers
Research Papers
Date:
February 2011
February 2011
Summary:
The USAID Expanded and Sustained Access to Financial services (ESAF) programme in Palestine is expanding its focus on increasing access to finance more broadly to include both credit and non-credit service expansion to underserved or unserved populations and markets in the West Bank and Gaza. In that context, this paper addresses the issue of the use of technology in enhancing the reach and cost effectiveness of delivery channels for banking and payments products and services in Palestine, drawing on the lessons of international experience. The current infrastructure of the financial sector in Palestine remains rather a traditional one, with banks continuing to rely heavily on their branch networks. There are some encouraging signs of growth in the Automated Teller Machines (ATMs) and Point of Sales (PoS) infrastructure, while almost universal access to mobile phones may also provide an opportunity for the future. Although access to bank accounts is widespread, significant numbers of people continue to rely on cash for savings and transactions; access to credit is very limited, particularly for micro and small enterprises. There therefore appears to be a high level of unsatisfied demand for financial services in general among individuals and enterprises in Palestine, and a high potential demand for electronic banking services in particular. Against this background, it is possible to build a vision and action plan for the future of electronic banking in Palestine.
The USAID Expanded and Sustained Access to Financial services (ESAF) programme in Palestine is expanding its focus on increasing access to finance more broadly to include both credit and non-credit service expansion to underserved or unserved populations and markets in the West Bank and Gaza. In that context, this paper addresses the issue of the use of technology in enhancing the reach and cost effectiveness of delivery channels for banking and payments products and services in Palestine, drawing on the lessons of international experience. The current infrastructure of the financial sector in Palestine remains rather a traditional one, with banks continuing to rely heavily on their branch networks. There are some encouraging signs of growth in the Automated Teller Machines (ATMs) and Point of Sales (PoS) infrastructure, while almost universal access to mobile phones may also provide an opportunity for the future. Although access to bank accounts is widespread, significant numbers of people continue to rely on cash for savings and transactions; access to credit is very limited, particularly for micro and small enterprises. There therefore appears to be a high level of unsatisfied demand for financial services in general among individuals and enterprises in Palestine, and a high potential demand for electronic banking services in particular. Against this background, it is possible to build a vision and action plan for the future of electronic banking in Palestine.
