As fintech is one of the booming sectors in Pakistan’s economy, the field is likely to serve as a catalyst by bridging the gap between the banking sector and the unbanked faction of public through innovative financial services.
Business consolidations
ABHI, a prominent fintech operator of the globe, which has made significant achievements, has entered Pakistan as first fintech firm to collaborate with TPL Corporation to acquire a foreign microfinance institution, FINCA Microfinance Bank. The banking regulator granted approval for this acquisition, marking a bold step that sets a precedent for other fintech companies to follow, focusing on long-term profitability, growth, and business expansion.
Recently, another local fintech operator made headlines by obtaining a foreign microfinance bank, while Finja, a pioneering fintech company in Pakistan, made waves with an unexpected exit from the market. Finja sold its operations to the rapidly expanding fintech giant, OPay.
New Players’ entry
There are four new operators which are set to join Pakistan’s fintech sector. Cerisma, a subsidiary of Pakistan State Oil (PSO), has received a license to function as an Electronic Money Institution (EMI). The company aims at introducing a range of financial services, including e-money wallets for both consumers and merchants. With over 3,500 outlets and billions of rupees in cash flow, the subsidiary is well-positioned to establish its operations.
In 2024, the banking regulator also granted in-principle approval to Toko Lab, which aims to launch e-money wallet services for both consumers and merchants.
EduFi Financial Services has commenced operations under a Non-Banking Financial Company (NBFC) license. The company offers educational loans to students, with repayment options available at a later stage.
Neem Exponential Financial Services has also introduced earned wage access, providing advanced salary services. The company raised funds in multiple rounds, both prior to and after launching the service.
Business E-Processing Systems’ expansion
A subsidiary of Systems Limited has begun its operations after receiving approval from the banking regulator. The company provides e-money wallet services to consumers, merchants, and agents. Moreover, Akhtar Fuiou Technologies and Hubpay have been authorized to launch their pilot operations, targeting specific segments of society with e-money wallet services.
The five fintech operators will be offering commercial services to their customers by the end of 2024. Currently, three operators are conducting pilot operations, while three others have obtained initial licenses. At the same time, four operators have decided to withdraw their plans to continue operating in Pakistan.
Singapore Fintech Festival
From Pakistan, as many as 10 tech firms took part for the first time in the largest global Singapore Fintech Festival in 2024.
The participation from Pakistan serves a platform to attract business and investment opportunities in the country. In addition, CEO of ABHI, Omair Ansari, was invited as one of the guest speakers to share the success story of his founded companies. Hakeem Tech also received a cash award at the festival for its exceptional services.
SECP updates list of fintech operators
Under the Non-Banking Financial Company (NBFC) framework, the Securities and Exchange Commission of Pakistan (SECP) has updated its list of whitelisted fintech operators.
Currently, nine operators, JazzCash, are authorized to provide digital lending services to customers. Moreover, the SECP has granted licenses to eight operators including Earned Wage Access (EWA), B2B financing, and Pay Later solutions.
