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.
Gender disparity in Pakistan exists at various levels despite not being present in the population divide. The Global Gender Gap Report of 2016 ranks Pakistan at 143 (out of 144) in the world in terms of economic participation and opportunities for women.
Karandaaz Pakistan recently held a Fintech Disrupt Challenge (FDC 2016) in collaboration with the Lahore University of Management Sciences Center for Entrepreneurship (LCE) with the aim of fostering fintechs in the country.
Challenge Funds (CF) have been implemented in several countries by donors to elicit innovative responses to a variety of chronic challenges, including bottlenecks in financial access, reducing the number of out-of-school children, arresting waste and inefficiencies in agricultural value chains.
Karandaaz Pakistan published a blog post on the use of prepaid cards in Pakistan. Among the needs discussed was a clear framework for the KYC requirements governing Pakistan’s prepaid market. That regulation arrived earlier this week.
Borrow a relative’s credit card. Have a friend pay. For those excluded from the formal financial system, paying online is more often a matter of finding the right proxy than finding the right tool. Innovations such as mobile wallets continue to expand access to electronic payments.