ISLAMABAD: To ensure financial inclusion and strengthen the microfinance sector, Pakistan Microfinance Investment Company (PMIC) and Qarar Consultancy (Qarar) will roll out a credit scoring model for the microfinance sector under the PMIC’s Challenge Fund-Round II.
Qarar is partnering with an MFI and a Credit bureau to access client-level data for the development of the first-of-its-kind model in Pakistan’s microfinance sector. Once the application is developed and fine-tuned after testing and pilot phases, PMIC and Qarar will establish its availability for the microfinance sector to adopt.
Speaking on the occasion, Yasir Ashfaq, CEO of PMIC iterated the PMIC’s commitment to financial inclusion and social impact in the country.
Challenge Fund is part of the strategy to build new institutions and models that would accelerate access to finance for the underserved segments of the country.
The credit scores will reduce human biases in evaluating client’s credit worthiness and will incorporate micro- and macro-level economic indicators in the model.
The partnership aims to leverage the strengths of both companies to deliver innovative and integrated solutions that enable microfinance providers to make faster and more accurate credit decisions that will reduce the cost for clients and reduce risk of the portfolios of the MFI’s.
Riaz Jassat, chief commercial officer, Qarar, said: “Our partnership with PMIC is a significant milestone for Qarar as we continue to provide cutting-edge software, products, and services for decisioning.
Our innovative solutions are designed to empower microfinance providers in Pakistan, enabling them to make informed decisions and push for positive impact.
We are honored to work with PMIC and, together, we are poised to take a big step forward in our ability to support financial institutions in making smarter decisions and driving sustainable growth in the region”.
Copyright Business Recorder, 2023
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