Mapping Creditworthiness of Unbanked Population
Conventional banking has typically focused on the 5Cs of “Credit” – character (identity), collateral (security), capacity (to repay), capital (savings, investments, or other assets), and conditions (usage of loan) – while making lending decisions.
DFS: Regulatory and Fiscal Impediments
Several governments in developing world, along with the donor community, seem keen on developing an “enabling environment” for digital financial services (DFS). DFS is seen as a pathway towards financial inclusion, which is being promoted as part of global development agenda.
Enhancing Savings through Digital Means
Pakistani individuals, firms and government are not generating enough savings to meet the economy’s investment requirements. This lack of domestic savings results in an inherent dependence on “foreign inflows” in the form of remittances, issuance of sovereign bonds/loans and flows under Foreign Direct Investment (FDI).