Microfinance Bank posts record growth in M-Wallets

KARACHI: Pakistan’s largest digital bank, Mobilink Microfinance Bank Limited (MMBL) has successfully retained its market standing as a leader in terms of microcredit and micro-savings during the third quarter of the financial year 2021, as per the latest report released by the Pakistan Microfinance Network.

MicroWatch, a quarterly update on microfinance outreach in Pakistan, in its latest edition evaluated Pakistan’s microfinance landscape for the third quarter of 2021 and said that the MMBL remains the largest provider of microcredit in terms of clients with over two million active borrowers and retained its position as a key industry leader by dominating 24.6 per cent of the total market share.

The primary driver behind MMBL’s growth were M-Wallets, which increased 1.8 million in the third quarter. The report concluded that in the microfinance industry, M-Wallets held 81 per cent of the total depositors with 14 per cent of the total value of deposits, while the remainder 19 per cent were traditional branch banking accounts worth 86 per cent of the deposits.

MMBL’s market share grew 51 per cent in terms of depositors by the end of the third quarter. MMBL has also been one of the key drivers of the growth in the Gross Loan Portfolio.

Commenting on MMBL’s growth in the third quarter of 2021, MMBL president and chief executive officer Ghazanfar Azzam said: “Digital payments are on the rise in Pakistan and MMBL is a frontrunner in providing digital financial services to the masses. Nearly two million new M-Wallets resulted in a 51 per cent growth in MMBL’s market share, which attests to the fact that the bank is a major contributor to holistic economic growth. Digital financial inclusion is at the core of MMBL’s goals and to accomplish this goal, MMBL is striving to provide products and services to millions of Pakistanis through its expansive digital financial ecosystem.”

The report also depict a steady growth trajectory by the end of the third quarter of the year and said the microfinance industry in Pakistan is on a path of recovery from the adverse effects of the global crisis instigated by the Covid-19 pandemic.

MMBL is dedicated to empowering people through its diverse digital portfolio; thereby, enhancing the access to equitable financial services across the country.

The sharp uptick in subscriptions is indicative of the growing customers’ faith in the bank, driven by its constant innovation and the corresponding technological advancements to stay ahead and relevant at all times.