Alif is Looking to Tap Pakistan’s Fintech Space

Tajikistan-based Alif is looking to tap Pakistan’s fintech space to cater Pakistan’s large ‘unbanked’ population. Alif was established in Tajikistan in 2014. The company is also among around 20 companies and startups, which have applied for a license after the State Bank of Pakistan launched the digital banking framework. The central bank’s initiative has gained tremendous interest from players from around the world. This makes for interesting times ahead with legacy banks being pushed to reinvent themselves, and the participation of fintechs making for a new ecosystem that should achieve the many objectives of the State Bank of Pakistan. Alif looks to offer BNPL, short term loans (month), B2B finance and remittances services. The company plans to invest a paid-up capital of Rs1.5 billion in the beginning and eventually Rs4 billion at full operations. Alif started out with four employees of which two were part-time. Since the company did not have any Core Banking software. Alif later decided to develop its own Core Banking system in-house, which laid the groundwork for building one of the strongest IT-teams in the Central Asian region. By 2017, Alif’s in-house core banking system was up and running. The products were created and accounted for in a Shariah compliant manner. By 2018, Alif increased products and services to include, alif mobi (the largest and most widely used finance mobile application in Tajikistan). By then, they have become the members of cross-border money transfer systems and launched online.alif.tj, an online banking solution in Tajikistan for individuals. The founders of Alif visited Pakistan to explore the market. The discovery led to an understanding of the credit ecosystem for BNPL, the banking offering, and an overview of the gaps that could be supported by a fintech, particularly one with a Shariah compliant and strong customer centric mindset. Alif used the last quarter of the year 2021 to prepare itself to enter the Pakistan market. Alif had already identified that the situation was ideal. There was many unbanked and underbanked population and SME players, women were massively underserved, migrants’ families were underserved, and the growing young population of Pakistan did not have a bank that would cater specifically to their behaviors. Alif was well-placed to do this, with its entirely in-house developed solutions. Alif could now boast having their own Core Banking System, Customer Relationship Management system, and an android and iOS enabled application.