A recent World Economic Forum session focused on financial inclusion in Pakistan. Pakistan’s Finance Minister emphasized the government’s push for digital payments and reduced cash usage. However, Omair Ansari, CEO of Pakistani fintech company Abhi, offered a different perspective.
Ansari argued that access to credit, not just digital payments, is the bigger challenge. He highlighted the need for “credit-led” solutions instead of simply promoting digital payments. Founded in 2021, Abhi provides salary advances to salaried workers facing financial gaps. They partner with telco wallets, a widespread alternative banking method in Pakistan, to offer their services.
Ansari believes traditional banks prioritize large loans to established companies, neglecting the needs of small businesses and individuals. Abhi steps in to fill this gap by offering smaller loans through partnerships with banks, leveraging alternative creditworthiness assessments based on telco data.
Ansari stressed the importance of an omni-channel approach, combining digital and physical presence, for mass adoption in emerging markets. He revealed Abhi’s partnership with TPL Corp to acquire a majority stake in FINCA Microfinance Bank. This move aims to establish a physical branch network, particularly crucial for reaching the agricultural sector. Abhi’s acquisition of FINCA underscores their commitment to offering credit solutions tailored to the needs of underbanked and unbanked segments in Pakistan, paving the way for a more inclusive financial landscape.
