Pakistan Microfinance Network and TPS partner up to digitize Pakistan’s micro-finance industry
Pakistan Microfinance Network (PMN) has signed an agreement with TPS to digitize Pakistan’s micro-finance industry through a Digital Services Platform (DSP). This partnership aims to bring the unbanked and underbanked population of the country into the sphere of financial services by enabling Microfinance Providers (MFPs) to work with Digital Financial Service Providers.
By 2020, the partnership will facilitate the local microfinance sector to achieve the goal of 50 million deposit accounts, 11 million insurance clients, and 10 million borrowers who will be provided with microfinance loans. With this agreement, PMN will leverage the capabilities of TPS as a digital payment service provider to empower DSP, so it could offer digital payment services in a shared hosting environment. The platform will make financial services wide-reaching as envisioned in the National Financial Inclusion Strategy and Financial Inclusion Program.
Once DPS has been deployed, various micro-finance providers will be able to integrate the system that will enable them to digitize their services, optimize businesses processes and help them reach to expand their operations across Pakistan. The platform will also enable real-time funds transfer, bill payments aggregation system, bulk disbursements and repayments. A hosted loan management system will also be a part of the solution that will be tailored for the microfinance industry. The platform also aims in the long run to increase the adoption of mobile wallet accounts. When all providers will be connected via DSP, it will provide ease and convenience during authorization, disbursement, and recollection of microloans.
This partnership will be pivotal in facilitating the Pakistani micro-finance industry in expanding its scale and quality, embracing diversity, bringing sustainability and financial inclusion to the neglected population of the country.