With over 5.2 million small and medium enterprises, Pakistan’s SME sector stands as one of the strongest drivers of the national economy. These businesses contribute around 40 percent to the country’s GDP, account for 25 percent of total exports, and employ nearly 78 percent of the non-agricultural workforce. Yet, despite their significance, most SMEs remain excluded from the formal financial system, relying on cash transactions and informal networks that limit their growth and scalability.
Mashreq NEOBIZ has set out to change this reality by introducing a digital-first business banking platform designed specifically for underserved entrepreneurs and small businesses. This move is expected to reshape how SMEs in Pakistan interact with financial services, making banking simpler, faster, and more inclusive.
“SMEs in Pakistan have shown remarkable resilience. However, they have never been given the tools or trust they deserve from the financial system,” said Syed Jaffar Abbas Shirazi, Head of NEOBIZ at Mashreq Pakistan. “For too long, SMEs have been viewed as risky businesses. But in reality, they are adaptive, resourceful, and essential to the economy. The real risk lies in ignoring their potential.”
Jaffar, who brings over 15 years of experience in digital banking and fintech innovation, is leading NEOBIZ with a clear mission: to remove the traditional barriers that have long kept SMEs from accessing formal banking. “A shopkeeper should not have to wait weeks or deal with piles of paperwork just to open an account,” he said. “NEOBIZ provides a fully digital, paperless, and seamless experience.”
The platform allows SMEs to open accounts instantly, send and receive payments, and manage their finances with ease. Unlike conventional banking platforms, NEOBIZ integrates tools that go beyond basic transactions, offering features designed to help entrepreneurs run their businesses more efficiently.
While NEOBIZ is new to Pakistan, the platform is backed by Mashreq’s extensive experience in serving SMEs in the UAE. The team engaged directly with freelancers, micro-retailers, and small business owners to design a platform that reflects real-world challenges. These insights have been localized to fit Pakistan’s unique market dynamics.
Pakistan’s informal economy accounts for over 72 percent of the non-agricultural workforce. Most of these businesses operate without formal registration or credit histories, making access to credit almost impossible under traditional models. NEOBIZ takes a different approach by leveraging transaction data and digital behavior patterns to assess customer reliability. “A consistent cash flow tells a more meaningful story than collateral or years of statements,” explained Jaffar.
One of NEOBIZ’s core goals is to reach entrepreneurs who have never used digital banking before. “The woman running a home kitchen, the freelancer in a tier-two city, the small trader who wants financial control without the complexity—these are the people we’re building NEOBIZ for,” he said.
Although the platform draws from Mashreq’s UAE experience, Jaffar emphasized its local-first mindset. “This is not a copy-paste model. NEOBIZ is built specifically for Pakistan’s realities, shaped by the voices of local businesses,” he added.
The roadmap for NEOBIZ includes expanding its offerings to embedded lending, insurance solutions, and AI-powered cash flow analytics. But its immediate focus remains on making financial access simple, relevant, and trustworthy. “Financial inclusion is not just about technology. It is about creating a relationship built on accessibility and trust,” Jaffar noted.
Pakistan’s regulatory environment is also evolving, with initiatives like the State Bank of Pakistan’s Digital Bank Licensing regime and the Raast payment system paving the way for greater inclusion. NEOBIZ aligns with these efforts, aiming to provide SMEs with the digital tools they need to thrive.
Mashreq’s entry into Pakistan is more than a market expansion—it is a strategy built around understanding local challenges and addressing them with precision. In a landscape where traditional banking often seems distant, NEOBIZ offers a tangible, technology-driven solution that empowers entrepreneurs to grow. “Our goal is not just digital banking,” Jaffar concluded. “Our goal is a digital partnership for economic upliftment. When SMEs grow, the economy grows with them.”
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