Bank Alfalah, IFC partners for SME banking success

F.P. Report

KARACHI: IFC, a member of the World Bank Group, launched an Supply Chain Finance advisory services engagement with Pakistan’s fifth largest private bank, Bank Alfalah Limited, to help boost access to finance for Small and Medium Enterprises (SME), spurring economic growth.

This partnership will help Bank Alfalah build and launch a best practice Supply Chain Finance proposition to grow its SME Banking business. Speaking on the occasion, Mehreen Ahmed (Group Head, Retail Banking, Bank Alfalah) said, “Supply chain finance programs present a viable commercial business use case for lending to MSME sector in a structured manner. With the advent of disruptive digital technologies in the banking space, synergies can be developed to digitize big data usage, and its application in underwriting SME-specific product programs, procedures, and digital delivery channels.”

SMEs play a vital role in Pakistan’s economy, contributing 30 percent to the GDP and employing 90 percent of its non-agricultural workforce, but many still struggle to access funding. By adopting best practices in supply chain finance, banks can maximize their reach and expand access to finance in this critical market segment. Bank Alfalah recognizes the key role SMEs play in Pakistan’s economy, and has developed a long term strategy to target the segment as a major business opportunity. In its continuous commitment to provide sustainable solutions, Bank Alfalah has also initiated various financial and non-financial programs to improve financial inclusion for SMEs.

“IFC will leverage its global experience and local knowledge to help Bank Alfalah adopt best practices in Supply Chain Finance,” said Rachel Freeman Manager IFC Financial Institutions Group East Asia and Pacific

The agreement is part of ongoing efforts by the World Bank Group to boost financial inclusion globally and achieve universal financial access by 2020. Pakistan is a priority country for IFC. During the last three years, IFC has ramped up its investments and advisory-services work in the country, helping to support the development of Pakistan’s private sector. The organization has focused on mobilizing investments in power and infrastructure, and providing access to finance to micro, small and medium enterprises through financial intermediaries.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity.

Since its inception, Bank Alfalah has grown rapidly to become Pakistan’s fifth largest private bank, the largest issuer and acquirer of credit cards and one of the largest Islamic Banking businesses in the country. The Bank has a network of over 630 branches spanning more than 200 cities with presence in Afghanistan, Bangladesh and Bahrain in addition to a representative office in the UAE. The Bank serves more than 1.5 million corporate, retail, small business, agricultural, Islamic and asset financing customers. In 2017, Bank Alfalah was named ‘Best Bank’ at the Pakistan Banking Awards.