Impact of Branchless Banking on Commercial Banks Profitability

  • Shah Khalid City University Peshawar
  • Dr. Shams Ur Rehman Institute of Business studies, the university of Agriculture Peshawar
  • Dr. Zain Ullah
  • Muhammad Ayaz Khattak Qurtuba University of Science and IT Peshawar
Keywords: Keywords: Branchless Banking, Mobile Banking, Electronic Banking, Green Banking, Profitability


Banks are the financial institution which has a very crucial role in the development of the economic condition of a country. The main objective of the banks is to maximize the profit of the banks. For that reason, banks continuously adopting new technologies in the banking system. The current study utilized the Branchless banking theories of bank-led theory and bank focused theory. The study selects volume of Agent Banking transaction, the volume of ATM, POS, and RTOB for the electronic banking and volume of mobile banking (MB) transaction for the channels of Branchless Banking. The study utilized the descriptive research design for the study. The study selected the whole population of the study means the full industry is selected for the analysis therefore there is no need for the sample size for the study. The study collected secondary data from the compendium reports, Branchless Banking newsletter reports, and payment review reports issued by SBP. The data collected for the study is from the 1st quarter of 2011 to the 4th quarter of 2018.  The study utilized the time series data as the full population is selected for analysis. The study utilized the Johansen co-integration and VECM model for analysis. The outcomes of research display that agent banking transaction, the volume of ATM, POS, RTOB and mobile banking transaction has a positive and significant short-run association with Profitability of Banking Industry of Pakistan The findings of the study implied that there is unilateral causality between the explain variables profit with explanatory variables, the volume of ATM, POS, RTOB, MB and volume agent banking.

How to Cite
S. Khalid, D. S. Rehman, D. Z. Ullah, and M. Khattak, “Impact of Branchless Banking on Commercial Banks Profitability”, jmr, vol. 7, no. 1, pp. 1-20, Sep. 2021.