SMS Banking Alerts Optional as Banks Shift Towards App and Email Notifications: SBP

The State Bank of Pakistan (SBP) has clarified that SMS banking alerts are optional and are provided only with a customer’s consent, as commercial banks increasingly shift towards mobile app notifications and email alerts for transaction updates.

The clarification came during a meeting of the Senate Standing Committee on Finance and Revenue, where lawmakers reviewed banking service charges, including fees associated with SMS alerts and issues related to card transactions.

Banks Expanding Digital Alert Options

SBP Governor informed the committee that customers are not required to subscribe to SMS alerts and can choose alternative notification channels based on their preferences.

As part of Pakistan’s ongoing digital banking transformation, many banks now offer real-time push notifications through their mobile banking apps, alongside email alerts for account activity. These digital channels provide instant transaction updates while reducing reliance on traditional SMS services.

The move reflects a broader industry trend toward app-based banking services, which offer richer features, stronger authentication mechanisms, and lower operational costs than conventional text messaging.

Mobile Banking Continues to Evolve

The discussion highlights how Pakistan’s banking sector is gradually modernizing customer communication through digital platforms.

Mobile banking applications today not only deliver transaction notifications but also allow users to:

• Receive instant debit and credit alerts
• Monitor account balances in real time
• Approve secure transactions
• Manage cards and payment settings
• Access account statements without visiting a branch

With smartphone adoption continuing to grow across Pakistan, app-based notifications are becoming an increasingly preferred alternative to SMS alerts.

SBP Clarifies Visa Card Transactions

During the meeting, the SBP Governor also addressed concerns regarding payment card transactions, confirming that Visa card transactions conducted within Pakistan are not charged in US dollars.

The clarification is expected to reassure cardholders following concerns over foreign currency deductions on domestic purchases.

Focus on Improving Digital Customer Experience

Besides discussing digital banking services, committee members also reviewed customer complaints regarding banking procedures and called for standardized operating procedures across commercial banks to improve customer service.

The SBP acknowledged that while regulations are already in place, implementation gaps at the branch level can affect customer experience. The central bank assured lawmakers that dedicated focal persons would be appointed to strengthen complaint handling and ensure more consistent service delivery.

Pakistan’s banking industry has accelerated its digital transformation in recent years, with financial institutions investing heavily in mobile applications, online banking platforms, and digital payment services.

The SBP’s clarification reinforces this shift, signaling that customers will increasingly have the flexibility to choose how they receive account notifications, whether through SMS, mobile apps, or email, as banks continue to modernize their digital services.