The Bank of Punjab (BOP) has taken a landmark step in digital banking by officially launching “BOP SME Digital Finance,” a fully digitalized lending solution tailored for small and medium enterprises (SMEs). The launch ceremony, held in Karachi, was attended by senior industry leaders including Deputy Governor of the State Bank of Pakistan (SBP) Saleem Ullah and BOP President and CEO Zafar Masud. Their participation highlighted the significance of this initiative in reshaping Pakistan’s SME financing landscape.
Zafar Masud described the initiative as a new era in SME banking, positioning BOP as the first commercial bank in Pakistan to introduce such a comprehensive, technology-driven lending solution. He noted that the bank has already emerged as a leader in SME digital lending through a diverse range of products such as the Asaan Karobar Card, Asaan Karobar Finance, eBusiness Qarza, and Kissan Card. These offerings have enabled small businesses, entrepreneurs, and farmers to access collateral-free and inclusive financing with unprecedented ease.
The impact of BOP’s SME strategy is reflected in its performance. By June 30, 2025, the bank recorded a 295 percent increase in SME borrowers, a 91 percent expansion in its SME portfolio, and a commanding 44 percent market share in SME lending, securing its place at the top of the industry.
The Deputy Governor of SBP praised BOP’s efforts, applauding the development of the digital SME finance product under the SBP Challenge Fund. He emphasized that such innovations are critical for sustainable growth in priority sectors, particularly SMEs, which are often underserved by traditional banking channels. The SBP’s broader SME finance strategy focuses on reducing structural barriers, streamlining loan approvals, easing collateral demands, and encouraging technology adoption. By June 2025, collective efforts by the government, SBP, and banks helped increase SME financing to Rs691 billion, marking a 41 percent year-on-year rise, while SME borrowers grew by 57 percent to 276,578.
Asif Riaz, Group Chief of Consumer Banking at BOP, highlighted in his address that BOP was the only bank to win the SBP Challenge Fund for Technology Adoption and Digitalization of SME Banking after rigorous evaluation. He explained that the new platform directly addresses long-standing SME challenges such as collateral requirements, lengthy application procedures, lack of documentation, and limited access to formal financial services.
The “BOP SME Digital Finance” solution is designed as a fully digital, collateral-free lending platform. It provides both existing and new clients with access to term finance and working capital through a seamless online process. Innovative features include structured business assessments, cash flow analysis to ensure repayment capacity, psychometric testing across 12 behavioral traits to measure creditworthiness, and automated scoring through regression-based statistical models. Approved borrowers can electronically accept offers, sign agreements, open accounts, and receive funds without visiting a branch.
This initiative has already earned BOP international recognition for its forward-looking approach to financial innovation. By digitizing SME lending, the bank has set new benchmarks in financial inclusion and digital transformation in Pakistan’s banking sector.
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