Tez Financial Services, digital non-bank microfinance company (NBMFC) that focuses to serve unbanked and under-banked customers in Pakistan. It is the service of a primary financial service provider to provide loans within 15 minutes.
The company has already raised $1.1 million in a seed round led by Omidyar Network, an impact investment firm established by Pierre Omidyar, founder of eBay. Other investors who helped raise the round include Accion Venture Lab, a seed-stage investment initiative of global nonprofit Accion. Planet N Funds are also to be deployed to build the company’s credit portfolio, enhance its mobile technology platform and to meet regulatory NBMFC requirements.
Nadeem Hussain, co-founder and CEO of Tez Financial Services commented, “It is vital to provide ample opportunities of financial service to unbanked and under-banked people opposed to time taking domestic commercial banks procedures.”
Furthermore, he added that they will be able to process a life and health insurance claim in similar time. According to the World Bank, in Pakistan, more than 50 percent of the population is unbanked. Therefore many resort to using various informal financial tools to manage their finances. Tez aims to integrate masses into the financial mainstream by leveraging increased penetration of smartphones.
Tez aims to reduce financial vulnerability of over 50 million underserved Pakistanis through a smartphone app that is driven by artificial intelligence that provides a frictionless access to an all-encompassing financial services offering including nano-credit, digital ROSCAs, health and term life insurance and tailored investments.
Kabir Kumar, head of policy and ecosystem building at Omidyar Network speaking about the app said, “New technologies, higher smartphone penetration, and falling data costs are fueling a great momentum for financial inclusion in frontier markets such as Pakistan. Tez is leveraging this to push the boundaries of banking in the country with an all-digital offering.”
Michael Schlein, President and CEO of Accion also said in a statement that Tez marks their first investment in Pakistan, a country with a significant need for innovative products that can bring its population into the formal financial system. He added that, “By supporting Tez’s all-digital model, we can help make an important difference for millions of underserved Pakistani families and businesses.”
Furthermore, Tez has also integrated with EasyPaisa, UBL Omni and SimSim as its branchless banking partners. It has also partnered with two insurance companies in Pakistan, EFU Life and Jubilee General to provide life and health coverage.
The Tez app is available for download on Google Play. They will be also actively disbursing credit to masses and launching additional products in order to further advance financial inclusion in Pakistan.
Reference links: dailytimes.com.pk
