The acquisition marks a breakthrough in the country's fintech landscape, as it is the first time a commercial bank has taken an equity stake in a BNPL fintech. With this collaboration, the Bank aims to transform the BNPL landscape in Pakistan and pave the way for more collaboration between commercial banks and fintechs.
In addition to the equity agreement, Bank Alfalah and QistBazaar have signed an embedded financing agreement in Shariah Compliant mode for up to PKR 350 million, subject to terms and conditions. The Bank will incorporate digital financing product within the QistBazaar platform to offer embedded consumer durables financing on BNPL. This will target customers with limited or no access to formal credit. The partnership is expected to usher in a new era by enhancing the customer experience, improving financial inclusion, and providing innovative solutions.
The signing ceremony was attended by senior leadership from the Bank, including Atif Bajwa, President and CEO; Aasim Wajid Jawad, Group Head of Strategy, Transformation, Customer Experience and Venture Capital Investments and Yahya Khan, Group Head of Digital Banking. From QistBazaar, CoFounders Arif Lakhani and Karim Gilani, along with other executives, graced the event.
Atif Bajwa, President and CEO, said, ‘Bank Alfalah is committed to working with partners to address the needs of customers with limited access to credit and lower purchasing power. Our collaboration with QistBazaar through an equity investment and Islamic-embedded financing deal marks a significant step forward. This partnership aims to provide inventive financial solutions, creating new opportunities for growth and support for these underserved customers.’
Arif Lakhani, CEO QistBazaar, commented. ‘QistBazaar has been on a mission to democratise purchasing power, and in the first 18 months of our existence, over 17,000 Pakistanis that we have served, most of them do not have bank accounts, nor could they have purchased what they did without going through us. With Bank Alfalah coming in as equity and embedded financing partner and their guidance and experience, our work will become much easier.’
The Buy Now Pay Later (BNPL) facility is becoming increasingly popular among consumers due to its affordability, convenience and financial flexibility while offering a cost-effective solution to traditional means of purchasing in times of high-interest rates. Bank Alfalah currently operates a thriving BNPL product through its award-winning e-commerce marketplace platform, Alfa Mall. Through this collaboration, the Bank aims to expand into customer segments with thin or non-existent credit files.
About Bank Alfalah:
Bank Alfalah is a leading commercial bank in Pakistan, boasting over 900 branches across 200 cities and an international presence in the UAE, Bangladesh, Bahrain, and Afghanistan. The bank offers a wide range of products and services, including corporate and investment banking, consumer banking, securities brokerage, commercial, small and medium enterprise, agricultural, Islamic, and asset financing to privatesector institutions and governments.
In 2018, Bank Alfalah launched its digital banking group, setting a high standard for the industry to follow with its Alfa app, a revolutionary new application that brings together an unprecedented range of services and features all in one convenient platform. In 2022, the bank was awarded the best 'Digital Bank' and 'Housing Finance' across Pakistan, highlighting its commitment to simplifying and improving the financial capabilities of its customers.
Media Contact:
Talha Hyder
Assistant Manager Corporate Communication
talha.hyder@bankalfalah.com
Rida Manzoor
Manager Corporate Communication
rida.manzoori@bankalfalah.com