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KARACHI: With a commitment to expanding financial inclusion and addressing the evolving needs of individuals and small businesses, Halan Microfinance Bank has pledged a $10 million investment in 2025 to drive a major expansion across Pakistan, reinforcing its presence in the country’s financial sector.

In March last year, MNT–Halan, Egypt’s largest microfinance company, acquired Advans Pakistan Microfinance Bank Limited. Following the acquisition, the bank was rebranded as Halan Microfinance Bank Limited and now operates under its new name.

In an exclusive conversation with Business Recorder, Mounir Nakhla, Founder and CEO of MNT-Halan, said that the Halan Microfinance Bank sees Pakistan as its next major opportunity. With a population exceeding 200 million and a low debt-to-GDP ratio, Pakistan holds significant potential for financial services. “Many small businesses and individuals lack access to financing, and Halan Microfinance Bank aims to bridge that gap,” he added.

ADVANS bank renamed Halan

“Presently, Halan Microfinance Bank is also awaiting the national license, which will allow it to expand across the country. To support this growth, Halan has decided to double the paid-up capital by investing $10 million during this year”, he added.

He mentioned that at present, the bank serves 50,000 customers, and its goal is to grow up to 0.2 million by 2025. In addition, the branch network will also expand from 24 locations to 100 branches and business units by the end of this year.

“To show our commitment, we have acquired a microfinance bank in Pakistan and our goal is to reach one million customers within the next three to four years. While entering a new market always comes with challenges, we have been impressed by the level of education and talent in Pakistan. We believe that with the right strategy, we can overcome any hurdle and build something great,” Nakhla added.

Looking ahead, the bank is preparing to introduce specialized financial products tailored to customer needs and later this year, it will launch a financial super app that will change the way people access money, he said.

He said MNT-Halan is also committed to bringing financial inclusion to Pakistan, just as it has done in Egypt and beyond. With the right mix of technology, innovation, and dedication, the bank is all set to make a lasting impact and contribute to Pakistan’s economic growth.

Replying to a question on decreasing policy rate, he said: “we are entering Pakistan at a time when interest rates are decreasing and unlike others, we see this as an advantage”. Lower interest rates allow the bank to offer better pricing, making financial services more affordable and this leads to increased investment, stronger economic growth, and a better future for all, he added.

“Pakistan has recently introduced digital banking licenses, but we believe that in countries like Egypt and Pakistan having a hybrid model minimizes credit losses and improves growth and profitability”, CEO MNT-Halan said. Digital services are essential to acquire, retain and cross sell to customers; however, in the absence of a digitized legal system personal interaction remains important for maintaining a healthy loan book and a combination of both leads to the best results, Nakhla said.

He informed that MNT-Halan, established in 2018, is the largest microfinance entity in Egypt, serving over eight million customers and more than one million borrowers and holds 25 percent of the market share, making it a key player in the industry.

The MNT-Halan group expansion has not been limited to Egypt as the company acquired Tam Finans in Turkey. In 2024, MNT-Halan entered the UAE, and within four months, a small team of three people managed to serve 100,000 customers. In Egypt alone, more than 2.3 million people use its app, and over a million borrowers have received loans through it, he mentioned.

Copyright Business Recorder, 2025

Comments

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zil ur Rehman khan Feb 06, 2025 10:44am
At least they some plan compare to advance management.
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