Pakistan’s first agriculture fintech Digitt+ is all set to pilot launch as Electronic Money Institution (EMI) after obtaining the State Bank of Pakistan’s approval.
Powered by Akhtar Fuiou Technologies (AFT), Digitt+ will launch its pilot operations within the next two weeks, Ahmed Saleemi, CEO of Digitt+ said.
Improved financial services for farmers
The launch of Digitt+ will give the country’s unbanked farmers improved access to financial services, said the Digitt+ CEO. It would give the opportunity to avail financial services to around 10,000 people, mostly farmers, according to the requirements of the State Bank of Pakistan, said Saleemi.
“This is a farmers’ lifestyle app that is going to ease the life of farmers through the digitization of the country’s agricultural ecosystem,” Saleemi told the media.
Through this fintech, the farmers can digitally avail almost all financial services, including payment of utility bills, purchase of fertilizers, and credit.
Digitt+ has partnered with Fuiou Payment Service, a Shanghai-based international payment solutions provider, to offer a market-based alternative to the traditional banking system. FuiouPay, through its 75 intellectual property licenses and several patented software, specializes in domestic and international payment services for individual investors and financial institutions.
Third largest unbanked adult population
Pakistan has the third largest unbanked adult population globally, according to the World Bank. About 100 million adults out of a population of 220 million are without a bank account, the World Bank data shows. The agricultural sector in Pakistan contributes 22.7% to the GDP and offers job opportunities to approximately 37.4% percent of the labor force.
Digitt+ will start services from Dera Ismail Khan in Khyber Pakhtunkhwa province, and Muzaffargarh and Kanjwani in Punjab, the districts with major sugar mills.
Currently, Pakistani farmers take credit from the informal sector, including from middlemen who mostly charge interest in the range of 60% to 70%. Providing farmers with a formal digital banking sector would primarily curb the role of the middlemen, resulting in substantial savings on the part of small farmers.
Digitt+ to address food security issues
Qasim Akhtar Khan, the founder and Chief Strategy Officer of Digitt+, said providing formal digital banking channels to farmers would address the country’s food security issues as well.
“This effort has the potential to solve food security issues, enhance crop yields, and improve human welfare in Pakistan, directly impacting thousands of farmers and merchants,” Khan said.