KARACHI: The State Bank of Pakistan (SBP) has announced to launch of a “Challenge Fund” for technology adoption & digitalization of SME banking to support innovative solutions for SME banking in the country.
The SBP has been taking measures to facilitate banks in improving access to finance for the SME sector and as a part of these efforts SBP is launching a ‘Challenge Fund’. This fund in the form of a grant will facilitate banks in developing innovative technological solutions to cater for the banking needs of the SME sector.
The scope of CFS will focus on loan origination and processing systems for SMEs, developing digital products, creating or enhancing digital platforms that offer financial education, and helping customers make informed decisions about their banking and financial management.
In addition, for upgradation or development of digital banking platforms, including mobile banking apps, online banking systems customer portals and any other unique idea relating to technological innovations that address the issues faced by SMEs to avail financing.
Commercial banks (conventional & Islamic) and other SBP-regulated entities are eligible to apply for grants under CFS. Banks can also apply in partnership with EMIs and Fintechs. However, lead responsibility will rest with the applicant bank.
Grant size will be determined according to the financing requirements of the proposal under consideration. However, each grantee will contribute 15 per cent of the total cost, depending upon the quality & innovations of the proposal, the grant size can vary, however, one bank will get only one grant. The duration of the projects to be implemented through the CFS grant should not exceed 08 months.
The SBP has invited the interest of banks through Expression of Interest (EOI) for availing grants under CFS to improve their SME financing portfolio. Banks proposals will be evaluated as per internal criteria by SBP.
Banks are encouraged to apply as per EOI in the prescribed format placed in Annexure-B to SBP within two weeks.
