Halan Microfinance BankListen to article
KARACHI:
Despite challenges such as slow internet, Pakistan’s increasing digitalisation and vast customer base are attracting foreign fintechs. With the financial sector poised for transformation, Egyptian fintech leader Halan Microfinance Bank is expanding its operations in the country, further fuelling this evolution.The fintech sector in Pakistan is witnessing rapid growth, driven by advancements in digital banking, microfinance, and mobile payments. The country’s payment systems infrastructure has expanded significantly, with 32 banks, 12 microfinance banks (MFBs), five payment system operators (PSOs), 16 branchless banking service providers (BBs), and three electronic money institutions (EMIs) supporting financial inclusion, according to i2i.Despite challenges, Pakistan’s financial sector bears striking similarities to Egypt’s economy. Both countries share cultural and economic parallelslarge populations, informal economies, and low access to financial services, said Mounir Nakhla, Founder and CEO of MNT-Halan, the parent company of Halan Microfinance Bank. “With household loans to GDP at just 3-4%, there’s immense untapped potential. Our mission is to bridge this financial gap through technology-driven banking.”When asked why they chose Pakistan, where people have limited savings and incomes, the CEO highlighted misconceptions about the country’s economy. “Pakistan is a cash-driven economy with significant informal lending. The official size of the economy is underestimated. It’s a much larger market than perceived, with a huge population and strategic geography,” he stated. “Providing small and micro-loans will not only help businesses grow but also be a profitable venture for us.”With a population of 241.5 million and Rs9.4 trillion in circulation, the need for digital financial solutions has become more crucial than ever. In major business hubs, daily cash transactions sometimes reach Rs50 million. “That’s an enormous amount of money,” the CEO exclaimed. “We are motivated to digitise payments and reduce cash reliance over time.”Digital payment adoption is accelerating, evident in the growing number of users across various channels. Microfinance has emerged as a key driver of financial inclusion in Pakistan, with the gross loan portfolio growing steadily from Rs275 billion in 2018 to Rs565.8 billion in 2024.Halan Microfinance Bank has already entered the Pakistani market by acquiring Advance Microfinance Bank. “It was a complex processwe had to restructure, bring in new talent, upgrade back-end systems, and redefine policies and strategies,” the CEO shared.The company’s approach will be a mix of physical and digital banking services, ensuring accessibility for all segments of society, with a strong focus on women, the agricultural sector, the auto market, and livestock farmers. “Our goal is to become the go-to financial institution for the masse
