BOP Launches Pakistan’s First Digital SME Business Loan Solution: “BOP SME Digital Finance”

BOP Launches Industry’s First Digital Business Loan Solution: “BOP SME Digital Finance”

The Bank of Punjab (BOP) has officially launched its groundbreaking SME lending product, “BOP SME Digital Finance,” at a high-profile event in Karachi. This launch marks a pivotal moment for Pakistan’s financial landscape, underscoring BOP’s dedication to fostering inclusive and digitally-driven financial solutions for small and medium enterprises (SMEs).

The event was attended by Mr. Saleem Ullah, Deputy Governor of SBP, and Mr. Zafar Masud, President & CEO of BOP, highlighting the national significance of this initiative in reshaping SME lending across the country.

**A New Era for SME Banking**

Mr. Zafar Masud hailed the launch as “A New Era of Banking for SMEs,” proudly stating that this digital venture positions BOP as “Pakistan’s first commercial bank to introduce such a comprehensive, tech-enabled SME lending solution.” He emphasized BOP’s leadership in digital lending, especially for SMEs, through its innovative product lineup including the Asaan Karobar Card (AKC), Asaan Karobar Finance (AKF), eBusiness Qarza, and Kissan Card. These solutions have transformed access to finance for small businesses, entrepreneurs, and farmers by providing collateral-free, fully digital, and inclusive options.

BOP’s commitment to SMEs is evident in its remarkable growth figures as of June 30, 2025:
* A staggering 295% increase in SME borrowers.
* 91% growth in its outstanding SME portfolio.
* A commanding 44% market share in SME lending, placing BOP at the industry’s forefront.

This journey of digital transformation has not only set new benchmarks in Pakistan but has also garnered international acclaim, with BOP receiving prestigious global awards for its pioneering digital initiatives, solidifying its reputation as a leader in financial innovation.

**SBP’s Vision for SME Finance**

Deputy Governor Mr. Saleem Ullah extended his congratulations to BOP and its IT and SME teams for developing the Digital SME Finance product, which was supported by the SBP Challenge Fund for SME financing. He lauded BOP’s dedication to priority sector financing, emphasizing its crucial role in achieving sustainable growth in areas like SME support.

Mr. Ullah also outlined SBP’s strategic approach to boosting SME finance. This includes removing structural obstacles, ensuring a favorable regulatory environment, simplifying loan processes, rationalizing collateral requirements, encouraging banks to leverage technology, and fostering collaborations with Fintechs and other service providers for scalable and sustainable SME financing. These collective efforts have led to a significant increase in total outstanding SME finance, reaching Rs691 billion as of June 30, 2025 (a 41% year-on-year increase), and the number of outstanding SME borrowers growing to 276,578 (a 57% year-on-year increase).

**Addressing Key Challenges with Innovation**

Mr. Asif Riaz, Group Chief of the Consumer Banking Group at BOP, highlighted that “BOP SME Digital Finance” was developed under the SBP’s Challenge Fund for Technology Adoption & Digitalization of SME Banking. BOP was the sole bank to win this highly competitive fund after a rigorous evaluation process.

This comprehensive digital platform directly tackles common challenges faced by SMEs, such as the lack of collateral, drawn-out application processes, insufficient formal documentation, and overall financial inclusion gaps—particularly for underserved small entrepreneurs.

The innovative, collateral-free digital lending platform offers a smooth financial journey for both existing and new customers, whether they require term finance or working capital. It integrates advanced features like:
* Business and financial assessments through structured questions.
* Cash flow analysis for realistic repayment evaluations.
* Psychometric testing of 12 behavioral traits to assess creditworthiness beyond traditional metrics.
* Automated scoring using a regression-based statistical model.

Approved customers can conveniently accept offers, electronically sign documents, and complete account setup and fund disbursement entirely through a digital process, revolutionizing the convenience and efficiency of SME financing.

The launch event concluded with senior management from both SBP and BOP offering their heartfelt congratulations to the team for achieving this transformative milestone, firmly establishing BOP at the vanguard of Pakistan’s digital banking revolution.