Microfinance as a sector is increasingly being pulled and shaped in different positions. From Telenor selling its bank, to Bank of Punjab announcing its plans to acquire a strategic stake in NRSP all has added to speculations about the economic feasibility of operating a bank in the segment.
Telco players like Jazz are trying to explore additional avenues to consolidate in their existing financial service models while commercial banking players like HBL, which has recently rebranded First Microfinance Bank to HBL Microfinance Bank, are solidifying their grip on existing investments.
Amidst all the changes happening within the sector, the question arises whether microfinance banks are commercially viable for the investors or are there other strategic motives for operating in the market?
Pakistan’s microfinance industry
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Amidst all the changes happening within the sector, the question arises whether microfinance banks are commercially viable for the investors or are there other strategic motives for operating in the market?
This is a very lopsided analysis. You have given all the space to Losers and made only a passing reference to the best microfinance banks in the country.
I think a detailed analysis of the most profitable banks, Khushhali, HBL microfinance, and U bank, would have been more instructive.
As presented, it appears more like sponsored content.
Dear Imran, what is the future of microfinance banks in Pakistan? Currently Ubank is aggressively expanding its branches networks so what your opinion about it.
As recently we have seen few microfinance banks have merged with commercial banks cause they were unable to beat competition given rising fintech.
Please do some detailed research before articulating your thoughts about such an important industry !!!
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