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
The objective of microfinance is similar to that of microcredit; its goal is to provide financial services to help encourage entrepreneurs in impoverished nations to act on their ideas and obtain the financial tools available to do so and to eventually become self-sustainable. Note: Access to the full article is limited to paid subscribers only. If you are already a paid subscriber, please Login here Otherwise, you can choose to purchase a subscription package below for as low as Rs 275/month:
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 !!!
It’s too bad to check your article late. I wonder what it would be if we met a little faster. I want to exchange a little more, but please visit my site.
온라인 카지노
j9korea.com