Currently, 86 percent of Pakistan’s population has no or limited access to the formal financial system. Credit cards are available to less than 1% of the population. Access to finance for small enterprises is much more challenging, with just about 8% able to acquire formal financing for their operations.
There is a genuine desire to obtain credit. With 37% of SMEs turning to pricey informal and frequently exploitative finance sources. Furthermore, credit is not just a requirement for small firms. Pakistan has the world’s fourth largest gig economy and over 100 million salaried employees, all of whom have a need but little to no access to credit.
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Countries in the industrialised world have used the reach and accessibility provided by fintech (financial technology) to have a direct impact on people’s financial livelihoods. Muawin by Cashew Financial Services from Pakistan is one such fintech business that is striving to make credit more accessible and transparent to ordinary Pakistanis.
The company has chosen to collaborate with major companies in the gig economy, retail, and consumer market sectors to provide tailor-made financial products that are tailored to the specific demands of each segment.
According to the company’s founders, Muawin means “helper,” “facilitator,” or “Madadgar” in Urdu, which is the driving idea behind the company’s strategy. Muawin, as a licenced NBMFC, intends to concentrate particularly on Pakistan’s vast new to credit category.
Their platform-driven approach is designed to collaborate rather than compete, making it incredibly simple for partners to participate in the loan distribution process, resulting in a win-win situation for all. Built and designed in Pakistan, the company feels it is ideally positioned to understand the market’s demands and design goods that are considerate, honest, and transparent.
Muawin’s partners may easily offer the platform’s current digital ecosystem of financial goods via plug-and-play APIs. All having the same purpose in mind: to make credit available to the end consumer.
Muawin’s Sahulat solution, developed in conjunction with Uber and Shell, allows Uber drivers to obtain fuel on credit at any Shell fuel pump. This product is utilised by drivers to bridge the liquidity gap created by credit rides, allowing them to have more cash on hand for their mobility needs.
Similarly, Muawin’s retail offering, Munafa, enables consumer goods sellers to buy on credit, allowing them to sell more and generate more profits.
Muawin’s overarching goal with every product is to provide new-to-credit borrowers with access to financial services so that they can build their credit ratings over time. As a result, they will have access to even more financial services and will be formally incorporated in the financial economy.
Muawin is gradually formalising more strategic collaborations across numerous sectors. All of them share the same belief: a financially inclusive populace leads to a financially powerful Pakistan.