December 10, 2013
KARACHI : FINCA Microfinance Bank Ltd has set its priority to expand its network and business in commercial sector particularly in the agriculture sector.
In a media briefing, President and CEO FINCA Pakistan Mudassir Aqil said informal lenders have existed for centuries in all societies, particularly in rural areas which tend to be geographically isolated from banking and commercial centers. We believe that rural and agricultural workers will benefit from the high quality, formal financial services that microfinance delivers, as has been the experience with such clienteles in other microfinance markets.
He said potential for the growth of the microfinance sector in Pakistan is substantial. The market size is currently estimated at about 27 million clients, whereas all microfinance institutions together are currently serving only about 10 percent of the market. Pakistan has a large population of hardworking, entrepreneurial people who do not yet have access to the financial services everyone needs.
Our greatest strength is our global experience and expertise, derived from being in the microfinance business for nearly three decades and across 21 countries on five continents before we came to Pakistan.
We will utilize this experience to become a major financial presence in Pakistan and will lead the industry in innovation, developing and offering a range of new products and services customized to customers’ needs, and focusing particularly on entrepreneurs, farmers and savers, he added.
Only about 10 percent of the estimated total market for microfinance in Pakistan is currently being served. So there is ample room for growth, he added.
Mudassir said now we are in the fortunate position of combining that deep understanding of the local market with the world-class expertise and best practices to which we now have access, as a member of the FINCA global family of companies. As far as weaknesses of the sector are concerned, I think the greatest one is that the sector as a whole is not innovating as much or as rapidly as it should be.