Local small businesses play a major role in the country’s economy but unfortunately this sector has had limited access to the formal financial sector
Karachi: Meezan Bank, one of the Pakistan’s Islamic banks, has announced a ground breaking partnership with Finja, the country’s first dual-regulated fintech (regulated by SBP and SECP), to support MSMEs (Micro, Small and Medium Enterprises) through Shariah-compliant digital financing.
Local small businesses play a major role in the country’s economy but unfortunately this sector has had limited access to the formal financial sector. With the outbreak of the Coronavirus pandemic, consumer preferences have moved swiftly from large grocery outlets to their neighborhood ‘Karyana’ stores from where they can safely purchase daily essentials. Given their growing importance, Meezan Bank recognized that this segment is in dire need of financing to optimize their sales cycle and achieve business growth.
The partnership between Meezan Bank and Finja will allow MSMEs in the country to avail unsecured Islamic financing. The financing transaction will be managed digitally and in real-time and once approved the financing amount will be credited to his Meezan Smart Wallet account. Finja’s digital ecosystem will streamline and accelerate the credit evaluation and decision-making process. The system will assess risks using various eligibility checks and ensure compliance to the Bank’s risk acceptance criteria and will therefore ensure that financing decisions are taken very swiftly and Islamic financing is provided to the customer without any delay. This collaboration will benefit the entire supply chain eco-system, focusing on facilitating the retailers and consequently, the distributors. (PR)