PMN and TPS sign an agreement to digitize Pakistan’s Microfinance Industry
Islamabad, Pakistan – May 23, 2018: Aiming to further its efforts towards bringing the unbanked and underbanked 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).’ 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 & repayments, and hosted loan management system for the Microfinance industry. With all MFPs interconnected via DSP, the authorization, disbursement and repayment of microloans will become convenient. In the long run, the platform will also facilitate in increasing 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 chabriwala 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.”
PMN, with the support of TPS, is committed to creating an enabling environment where MFPs will be able to enhance their scale, quality, diversity and sustainability to achieve inclusive financial services.
About PMN
The Pakistan Microfinance Network (PMN or ‘the Network’) is an association of 46 Microfinance practitioners including Microfinance Banks and Non-Bank Microfinance Companies that provide financial services to the segment of population living at the bottom of the pyramid. PMN’s mission is to ‘support the financial sector, especially retail financial service providers to enhance their scale, quality, diversity and sustainability to achieve inclusive financial services’.
About TPS
TPS is a leading provider of payment solutions which is trusted by over 130 commercial and central banks, telecoms, payment processors and financial institutions across Asia, Africa and Europe. With Pakistan as its base since 1996, TPS has played a pivotal role in building 1LINK, which is now the country’s largest interbank switch. TPS has the largest market share in Pakistan, with its technologies and services empowering banks to issue cards and provide digital services. With continuous investment in technology and human capital, TPS has been constantly developing and improving its solutions while maintaining a customer centric approach.
