Mobile banking helps growth of small loans
The spread of information technology and telecom footprint across the country, along with a competitive environment in the digital lending sector, can help millions achieve financial independence in the country, according to the chief executive of a microfinance company. Habibur Rehman, the CEO of Sarmaya Microfinance, said, however, the biggest challenge to digital financing was the widespread operation of non-registered and illegal platforms that exploit their clients. “As the outreach of digital lending platforms grows, not only new loaning options are available to citizens in remote areas, but it would also help digitisation of the economy,” said Mr Rehman while talking to the media. “Access to finance is among basic human needs in the modern era and getting loans in an emergency situation is difficult in rural areas as people do not have banking products like credit cards and ATMs are not available.”