Voluntary insurance for rapid growth digital banking: Seeking attentions for policy-design in Pakistan-economy

Abstract

In today’s business-driven world, e-banking service is an important product in financial sectors of many countries and Pakistan is no exception. Many affect the delivery of these services, often unpredictable, factors and are fraught with serious pitfalls including those of psychological nature. The Voluntary Insurance scheme can help the country overcome existing difficulties and move closer to a cashless society, contributing to the growth of the banking sector and safety of the e-banking operations in Pakistan. The new e-banking legal products are expected to gratify consumers, make the banks stronger, and contribute to the overall social development; the proposed Voluntary Insurance is to guarantee their success. The Welfare Analyses have been used for setting the VI prices so that the customers’ efficiency-cost balance could become appealing. Once the policymakers and policy practitioners of Pakistan recognize the importance of the proposed VI product and make the necessary arrangements for its use in the e-banking services market, it may spread from bankers to their customers and thus over the whole economy. The process of life cycle of the VI product will follow the “S-curve” in progression. These developments will become drivers of economic growth and e-services will eventually replace traditional banking.