Asasah, a microfinance institution (MFI) in Pakistan, reportedly has announced that it will be utilizing Easypaisa, the branchless banking service of MFI Tameer Microfinance Bank Limited (TMFB) of Pakistan, as an option for borrowers to repay their loans [1]. Easypaisa is a joint venture of TMFB and Telenor Pakistan, a subsidiary of Norwegian mobile communications company Telenor Group. Easypaisa users are able to conduct financial transactions using mobile phones or by visiting an Easypaisa shop, Telenor service center or TMFB branch. There are reportedly 14,000 Easypaisa agents in approximately 600 cities across Pakistan.
As of 2010, Asasah reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 1.9 million and 18,900 active borrowers, most of whom are women. TMFB reported to MIX total assets of USD 61.7 million, a gross loan portfolio of USD 36.2 million, return on assets (ROA) of 3.74 percent, return on equity (ROE) of 12.6 percent and 111,100 active borrowers as of 2010.
By Nisha Koul, Research Associate
About Asasah: Asasah was established in 2003 in Pakistan as a nonprofit organization with the aim to “enhance the micro productivity of the house hold living below the poverty line by providing economic, educational and diversified information opportunities” and has since been operating as a microfinance institution (MFI) with 100 percent of its funding supplied by commercial sources. As of 2010, Asasah reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 1.9 million and 18,900 active borrowers.
About Tameer Microfinance Bank Limited: Tameer Microfinance Bank Limited is a licensed commercial bank in Pakistan that provides microfinance services such as small business, group and emergency loans; micromortgages; microinsurance; savings; and money transfers. It was founded in 2005 and is based in Shahrah-e-Faisal, Pakistan. Telenor Pakistan, a subsidiary of the Norwegian mobile communications company Telenor, owns 51 percent of TMFB. As of 2010, TMFB reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 61.7 million, a gross loan portfolio of USD 36.2 million, return on assets (ROA) of 3.74 percent, return on equity (ROE) of 12.6 percent and 111,100 active borrowers.
About Telenor Pakistan: Telenor Pakistan is fully owned by the Telenor Group, a communication services provider operating in 11 markets in Europe and Asia as of 2010. Telenor Pakistan began commercial operations in Pakistan on March 15, 2005. At the end of October 2010, it reported a subscriber base of 24.1 million and a market share of 24 percent. Telenor Pakistan acquired 51 percent of Tameer Microfinance Bank in November 2008. In 2009 it launched Easypaisa to offer branchless banking services across Pakistan. There are reportedly 14,000 Easypaisa agents in approximately 600 cities across Pakistan.
Sources and Additional Resources:
[1] Business Recorder, “Repayment of small loans: Asasah to utilise Telenor, Tameer Microfinance Bank’s Easypaisa services,” http://www.brecorder.com/money-a-banking/single/635/198/1261718/
MicroCapital.org story, August 4, 2011, “MICROCAPITAL BRIEF: Boston Consulting Group Publishes “Socio-Economic Impact of Mobile Financial Services” for Telenor, Exploring Effects of Mobile Financial Services in Bangladesh, India, Malaysia, Pakistan, Serbia Over the Next Decade,” https://www.microcapital.org/microcapital-brief-boston-consulting-group-publishes-socio-economic-impact-of-mobile-financial-services-for-telenor-exploring-effects-of-mobile-financial-services-in-bangladesh-india-malaysia/
MicroCapital.org story, July 11, 2011, “MICROCAPITAL BRIEF: Easypaisa, Branchless Banking Service of Tameer Microfinance Bank Limited, Telenor Pakistan Facilitates $9m in Remittances Over 10 Months,” https://www.microcapital.org/microcapital-brief-easypaisa-branchless-banking-service-of-tameer-microfinance-bank-limited-telenor-pakistan-facilitates-9m-in-remittances-over-10-months/
MicroCapital.org story, January 1, 2010, “MICROCAPITAL BRIEF: Microfinance Institution Asasah, Al Huda Centre of Islamic Banking and Economics (CIBE) to Grow Shariah-Compliant Products in Pakistan,” https://www.microcapital.org/microcapital-brief-microfinance-institution-asasah-al-huda-centre-of-islamic-banking-and-economics-cibe-to-grow-shariah-compliant-products-in-pakistan/
MicroCapital Universe Profile: Asasah, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asasah
MicroCapital Universe Profile: Tameer Microfinance Bank Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tameer+Microfinance+Bank
MicroCapital Universe Profile: Telenor Pakistan, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Telenor+Pakistan
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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