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PMN, Telenor sign agreement to digitise microfinance industry

ISLAMABAD: The Pakistan Microfinance Network (PMN) has signed an agreement with Telenor Microfinance Bank (TMB) to bring the unbanked and underbanked segment of the society into the fold of financial services.

The agreement focuses to digitise country’s microfinance industry through the Digital Services Platform (DSP). The agreement will also help the microfinance sector to achieve its goal of reaching out to 10 million borrowers, 50 million deposit accounts and 11 million insurance clients by 2020.

Under the agreement, the PMN will use Telenor Microfinance Bank’s branchless banking solutions to power its Digital Services Platform. The objective of building such a platform for the microfinance sector will help increase outreach of financial services as envisaged by National Financial Inclusion Strategy (NFIS) and Financial Inclusion Programme (FIP).

DSP will be integrated with Telenor Microfinance Bank for its agent network for disbursement and repayment transactions. The PMN will also be using the bank’s services for daily settlement of funds with its members. This collaboration will allow clients of PMN member institutions to receive loans and deposit loan repayments at Telenor Bank’s agents as well as through mobile wallets.

Speaking on the occasion, PMN CEO Syed Mohsin Ahmed said the agreement was the beginning of a long journey towards end-to-end digitisation of the microfinance operations.

Telenor Microfinance Bank Acting CEO Aslam Hayat said TMB wanted to enable the underserved people of Pakistan to transform their lives and help achieve economic empowerment and rapid growth.