SBP issues nationwide licence to Halan Microfinance Bank

KARACHI: The State Bank of Pakistan (SBP) said on Thursday it had issued a nationwide microfinance banking licence to Halan Microfinance Bank Limited, the latest effort by the central bank to increase financial inclusion and promote digital payments in the country.

MNT-Halan, Egypt’s top fintech, acquired Advans Pakistan Microfinance Bank last year and subsequently rebranded it as Halan Microfinance Bank.

“The [SBP] has granted a nationwide microfinance banking licence to Halan Microfinance Bank Limited with effect from June 3, 2025,” it said in a statement. “ MFB has recently been acquired by MNT-Halan, which has a global presence, offering business and consumer lending, digital payments and e-commerce solutions to the underserved and unbanked,” it added.

The SBP aims to enhance the level of financial inclusion in the country to 75 per cent and reduce the gender gap to 25 per cent by 2028. The National Financial Inclusion Strategy for 2024-2028 reports that financial inclusion, measured by the percentage of the adult population with a bank account, has risen from 16 per cent in 2015 to 64 per cent in 2023. There is a significant opportunity in Pakistan’s fintech sector, driven by a large unbanked population, high mobile phone penetration and increasing digital adoption, along with regulatory support for fintech innovation.

The national licence will enable Halan Microfinance Bank to expand beyond Sindh to the rest of the country, the bank said in a statement. “The national licence permits the bank to launch and manage financial services, including branchless banking, cards, mobile banking, retailer-based transactions and wallet services. These services will complement the bank’s current product suite, which includes microfinance, salary advances, pensions, current accounts and savings accounts,” it said.

The bank targets the financially underserved by offering unsecured and low-ticket funding with minimal documentation, fast processing and competitive monthly instalments. The bank offers funding specifically for women, agricultural workers and commercial vehicles. This inclusive model enables microentrepreneurs, small traders and low-income segments to achieve financial independence, often without collateral.