MICROCAPITAL STORY: Tameer Microfinance Bank (TMFB) to Offer Customers Access to One-Link ATMs Throughout Pakistan

Tameer Microfinance Bank (TMFB), a commercial microfinance bank in Pakistan, has signed an agreement with One-Link, a Pakistani Automated Teller Machine (ATM) company, to enable TMFB customers to use 2,000 Onelink ATMs in 150 cities throughout Pakistan. The agreement was signed by President and CEO of TMFB Nadeem Hussain and CEO of Onelink Khayyam Mahmood Butt on behalf of their respective companies.

Hussain reported that TMFB’s current use of Biometric ATMs has been a success with customers, with 50 percent of the banks transactions being carried out through the ATMs, compared to 15 to 20 percent of transactions of large-scale commercial banks. He also announced that TMFB would soon launch Point of Sale and Farm Instruments, business systems management technologies, as well as start branchless banking by the first quarter of 2008. Hussain said that online and branchless banking facilities would help attract those who do not use banking facilities to the banking system. TMFB is the first Pakistani microfinance bank to employ Onelink services for its customers.

TMFB, licensed by the State Bank of Pakistan in 2001, is a private commercial microfinance bank that lends mostly to individuals. It reports 26,709 active borrowers and total disbursed loans of PKR 1.1 billion (USD 18.4 million). According to MIX, the microfinance information clearinghouse, TMFB’s 2006 year-end financial data reveals a total loan portfolio of USD 923,407, total assets of USD 20.9 million, debt-to-equity ratio of 139.2 percent. JCR-VIS, a credit rating agency, in October, gave TMFB a short term rating of A-2 (range of A-1+ to C) and a medium to long-term rating of A- (range of AAA to D) with a negative outlook, which signals the potential direction of the assigned ratings. JCR-VIS speculates that on account of TMFB pioneering to become the “only noteworthy lender to individuals in the local urban market”, it has experienced non-performance in portfolios of key branches, which has impacted the bank’s total financing. However, the bank is taking remedial measures to ensure sustainability.

CEO of One-Link Khayyam Mahmood Butt reported that about 2 million transactions are made through its 2,000 ATMs every month. Since 2006, when the company introduced its Electronic Inter Bank Fund Transfer system, thirteen banks have been transferring funds through this facility.

By Mary Fu

Additional Resources:

The News: “Microfinance bank to use ATM network”

Tameer Microfinance Bank Limited: About Tameer Bank

Bloomberg: Currency Calculator

Microfinance Information eXchange (MIX): Profile for TMFB

JCR-VIS: Press Release “JCR-VIS revises outlook on Tameer Microfinance Bank Limited”