SBP has introduced a Challenge Fund for SMEs (CFS) to encourage banks and fintech providers to develop innovative digital solutions for enhancing access to finance for small and medium-sized enterprises (SMEs).
CFS aims to spur innovation in SME banking by leveraging technology, including fintech. By providing affordable financing options, the fund seeks to promote entrepreneurship and create a robust digital financial services (DFS) ecosystem in Pakistan.
The scope of the CFS includes areas such as loan origination and processing systems, digital products, financial education platforms, and digital banking platform upgrades. The focus is on enhancing financing access for marginalized segments like startups, women-led SMEs, and underserved areas.
Commercial banks and SBP-regulated entities can apply for the CFS, either individually or in partnership with fintechs. The grant size will vary based on the project’s requirements, with a 15% contribution from the applicant.
SBP expects the CFS to drive innovation and improve access to finance for SMEs, contributing to Pakistan’s economic growth and development.
