KARACHI – The Bank of Punjab (BoP), proudly announced the official launch of its state-of-the-art SME lending product, “BOP SME Digital Finance,” at a prominent event held in Karachi.
The launch marks a significant milestone in Pakistan’s financial sector, reinforcing the bank’s commitment to nurture inclusive and digitalized financial solutions for small and medium enterprises (SMEs). The event was graced by Mr. Saleem Ullah, Deputy Governor of SBP, and Mr. Zafar Masud, President & CEO of BoP. Their presence underlines the significance of this pioneering initiative in transforming SME lending practices across Pakistan.
Mr. Zafar Masud while calling it A New Era of Banking for SMEs emphasized that this digital initiative sets BOP apart as “Pakistan’s first commercial bank to introduce such a comprehensive, tech-enabled SME lending solution.” He further added that BOP has emerged as the market leader in digital lending, particularly for SMEs, through its innovative suite of products, including the Asaan Karobar Card (AKC), Asaan Karobar Finance (AKF), eBusiness Qarza, and Kissan Card. With these solutions, BOP has redefined access to finance for small businesses, entrepreneurs, and farmers by offering collateralfree, fully digital, and inclusive lending options.
As of June 30, 2025, BOP has achieved:
- 295% increase in SME borrowers
- 91% growth in outstanding SME portfolio
- 44% market share in SME lending, placing BOP at the top position in the industry.
BOP’s digital transformation journey has not only set benchmarks in Pakistan but has also earned global recognition. The bank has won prestigious international awards for its pioneering digital initiatives, positioning itself as a recognized leader in financial innovation.
Deputy Governor Mr. Saleem Ullah congratulated the BOP and its IT and SME team for developing the Digital SME finance product under the SBP Challenge Fund for SME financing. He appreciated the priority sector financing capacity and culture nurtured by BOP and said that such an approach and culture is critical for achieving sustainable increase in priority sector financing including SMEs. He highlighted the SBP strategy for promoting SME finance, which include removing structural barriers in SME finance, ensuring conducive regulatory environment, simplifying loan processing, rationalizing collateral requirements, encouraging banks to leverage technology, fostering partnerships with Fintechs and other non-financial service providers for scalable and sustainable SME financing. As a result of collective efforts of GoP, SBP and banks/DFIs, the total outstanding SME finance increased to Rs691 billion as of June 30, 2025 exhibiting an increase of 41% YoY basis. Similarly, the number of outstanding SME borrowers also increased to 276,578 showing a growth of 57% on YoY basis. Mr. Asif Riaz, Group Chief of the Consumer Banking Group at BOP, in his welcome note highlighted that “BOP SME Digital Finance” was developed underthe SBP’s Challenge Fund for Technology Adoption & Digitalization of SME Banking. BOP was the only bank which won this challenge fund after a rigorous evaluation and tough competition. This comprehensive digital platform addresses critical challenges faced by SMEs, including the absence of collateral, lengthy application processes, lack of formal documentation, and overall financial inclusion gaps—particularly for underserved small entrepreneurs.
This innovative, collateral-free digital lending platform offers a seamless financial journey for both existing and new-to-bank clients, whether seeking term finance or working capital. It incorporates advanced features such as business and financial assessments through structured questions, cash flow analysis for realistic repayment evaluation, psychometric testing of 12 behavioral traits to gauge creditworthiness beyond traditional metrics, and automated scoring using a regression-based statistical model.
Approved customers can easily accept offers, sign documents electronically, and complete account setup and fund disbursement entirely through a digital process, redefining convenience and efficiency in SME financing. The launch was attended by senior management members from both SBP and BOP, who extended their hearty congratulations to the team for achieving this transformative milestone, firmly positioning BOP at the forefront of Pakistan’s digital banking revolution.
