Meezan Bank, Pakistan’s largest Islamic financial institution, has partnered with CashNow, a pioneering supply chain finance platform, to create the nation’s first fully digital Islamic supply chain finance solution. This collaboration marks a significant milestone for Shariah-compliant finance in Pakistan, providing suppliers with access to a digitally integrated financing model. The Memorandum of Understanding (MoU) was signed at Meezan Bank’s Head Office, with senior representatives from both Meezan Bank and CashNow in attendance.
This strategic alliance empowers CashNow, an innovative fintech company, to support Meezan Bank in developing a digital supply chain finance platform tailored specifically for Islamic financing. This new product is set to offer Meezan Bank’s clients a streamlined, fully Shariah-compliant solution that simplifies access to working capital for suppliers. Through the collaboration, CashNow’s platform will be integrated with Meezan Bank’s core banking systems, enabling the digitization of the entire transaction process from request to approval.
The product will cater primarily to finished goods financing, allowing suppliers in various sectors to access capital in a fully Shariah-compliant manner. By digitizing supply chain finance, this partnership aims to overcome traditional hurdles associated with financing for small and medium enterprises (SMEs) and supply chain participants, ensuring faster transaction times and transparent access to credit.
Syed Tanveer Hussain, Group Executive of Corporate, Commercial, and Investment Banking at Meezan Bank, expressed the institution’s commitment to supporting SMEs and enhancing supply chain finance across Pakistan’s business ecosystem. “Meezan Bank is dedicated to fostering growth across various business sectors, with a strong focus on SMEs and supply chain finance,” Hussain stated. He emphasized the bank’s goal of driving financial inclusion through Shariah-compliant offerings and supporting the operational needs of its diverse clientele.
CashNow’s Co-Founder and Director, Saeed Iqbal, underscored the significance of this partnership for Pakistan’s financial landscape. “We are honored that Meezan Bank has entrusted CashNow with this pivotal Supply Chain Finance initiative,” Iqbal noted. He highlighted the alignment between CashNow’s digital capabilities and Meezan Bank’s Shariah-compliant banking framework, marking a leap forward for the fintech’s role in Pakistan’s Islamic finance sector.
As the first digital Islamic supply chain finance platform in Pakistan, this new solution by Meezan Bank and CashNow represents a landmark achievement in the country’s financial services industry. By embracing fintech innovation, Meezan Bank can offer its clients rapid and compliant access to financing, further establishing its leadership in digital Islamic finance. For CashNow, the partnership showcases the fintech’s potential to address complex banking requirements through advanced technological solutions, setting new standards in Shariah-compliant supply chain financing.
This collaboration also supports Pakistan’s broader economic objectives by enhancing financial access for SMEs and suppliers who often face challenges in obtaining traditional financing. With supply chain finance now digitized and aligned with Islamic principles, SMEs can expect greater operational efficiency and flexibility, allowing them to manage inventory and working capital needs more effectively.
Meezan Bank and CashNow’s digital product aims to drive efficiency and transparency, potentially influencing other financial institutions in Pakistan to explore similar Shariah-compliant, technology-driven solutions. By setting a precedent for Islamic digital finance, the partnership reinforces Pakistan’s position as a growing hub for Islamic fintech innovation, bringing together financial institutions and tech platforms to serve the evolving needs of businesses in a compliant, accessible manner.
Through this initiative, Meezan Bank and CashNow are not only advancing supply chain finance but also promoting economic growth and supporting Pakistan’s fintech ecosystem. This partnership aligns with the country’s vision of fostering a more inclusive, technology-driven economy, emphasizing the role of Islamic finance in shaping the future of Pakistan’s financial landscape.