Karandaaz Pakistan has appointed FinSurgents to develop a framework to support early stage investments in digital finance and the nascent fintech industry in Pakistan. The framework study and resultant recommendations are expected to form the basis of the investment support that Karandaaz plans to extend in this exciting and upcoming industry in Pakistan.
The study will explore the forces determining how the digital finance industry will develop in Pakistan, the key actors relevant for various future scenarios and identify the type of solutions that need seeding and early stage support.
The formal engagement was inked between CEOs of both entities at a meeting held in FinSurgents’ Lahore office. Imdad Aslam, Interim CEO at Karandaaz Pakistan, stated that by commissioning this study, Karandaaz hopes to help spark the flame necessary to unleash the true potential of FinTechs in this country.
Imdad Aslam (R), Interim CEO at Karandaaz Pakistan singing the contract with Qasif Shahid (L), CEO FinSurgents
“Through the advancement of FinTechs, Pakistan can quickly leapfrog into the modern age of digital finance, payments and so many other areas that other new age-companies seem to reshaping and redefining globally”, he said. He went on to say that success would come as a consequence of industrywide engagement of like minded professionals collaborating in areas of digital and financial services.
Qasif Shahid, CEO FinSurgents, stated that both organizations shared a vision of placing Pakistan on the global FinTech map. He added that the need of the hour was not to simply invest and support the local upcoming FinTechs in the country, but to create real, meaningful and powerful impetus behind the effort in constructing an environment conducive to the growth of FinTechs in Pakistan. This, he stated, should follow the path the other progressive countries had taken.
FinTech, short for Financial Technology, is the use of technology to provide financial services. FinTechs around the globe have been experiencing tremendous growth over the past few years. From less than 1 billion dollars’ funding received in Q2 2010 to nearly 3 billion dollars received in Q1 2015. That is nearly 200% growth in funding alone over the past five years, with nearly 97% YoY growth expected in 2015.
Pakistan, home to the sixth largest population in the world, provides an excellent opportunity for FinTechs to grow and operate and in the process in contributing to the country’s economic and GDP growth in a meaningful way. The increase in internet and smart phone users in the country, the young population, and the urge for achieving financial inclusion are among a number of factors that make Pakistan a promising market for shaping digital behaviors of tens of millions of Pakistani consumers.
