Pakistan Microfinance Network and TPS sign an agreement to digitize Pakistan’s Microfinance Industry
Islamabad, June 06, 2018 (PPI-OT): Aiming to further increase its efforts towards bringing the unbanked and under-banked into the fold of financial services, Pakistan Microfinance Network (PMN) has signed an agreement with TPS, in the presence of the PMN Board and members, to digitize Pakistan’s microfinance industry through a ‘Digital Services Platform (DSP).’
PMN is grateful for the support being provided by the UKAID’s DFID for this initiative. DSP will enable Microfinance Providers (MFPs) to ride on the rail road of Digital Financial Service Providers with the twin objectives of increasing accessibility for clients and brining efficiency through available distribution channel. The agreement will help the microfinance sector achieve its goal of reaching out to 10m borrowers, 50m deposit accounts and 11m insurance clients by 2020.
PMN aims to leverage the capabilities of TPS’ cutting-edge solutions to power its Digital Services Platform that will offer digital payments services in a shared hosting environment. Building such a platform for the microfinance sector is pivotal to increase outreach of financial services as envisaged by National Financial Inclusion Strategy (NFIS) and Financial Inclusion Programme (FIP).
With TPS’ payment platform deployed, MFPs will be able to swiftly integrate with DSP to digitize their services, optimize business processes and increase their geographical footprint across Pakistan. The platform will also enable interoperable transactions such as real-time funds transfer, bill payments aggregation system, bulk disbursements and repayments, and hosted loan management system for the Microfinance industry. With MFPs interconnected via DSP, the authorization, disbursement and repayment of microloans will become convenient. In the long run, the platform may also facilitate to increase the uptake of M-Wallet accounts.
Speaking on the occasion, Syed Mohsin Ahmed, CEO at PMN said, “This agreement is beginning of a long journey, a journey in which we want to keep a lens on our clients and work with our members towards end to end digitization of the Microfinance operations – from loan acquisition to recovery and from opening of m-wallet accounts to increased usability of those accounts. Our aim is to create a network effect that transforms the way we have been working and move towards digital transactions at the street vendor level”
Shahzad Shahid, CEO at TPS, commented, “Technology is the only way to significantly cut the time and cost of delivering conventional and new financial services to low income population and I am happy that TPS has been trusted for this strategic project by PMN. TPS has played a vital role in developing the platform that today interconnects the conventional banks in Pakistan and enables various cross bank financial services. This project with PMN gives TPS an opportunity to digitize the financial services for masses who are out of conventional banks’ ambit. We are sure that this initiative can bring real impact on the national economy and a common man’s quality of life.”
For more information, contact:
Pakistan Microfinance Network
3rd Floor, Mandir Square, Block 12-C/2
G-8 Markaz, Islamabad, Pakistan
Tel: +92-51-2266215-17, +92-51-2292231
Email: email@example.com, firstname.lastname@example.org
Category: General Business News