Egypt-based Halan Microfinance Bank has entered the Pakistani market through the acquisition of Advans Microfinance Bank, aiming to tap into the country’s growing demand for digital financial services despite infrastructure challenges.
MNT-Halan is Egypt’s largest and fastest growing lender to the unbanked and underbanked.
MNT-Halan acquired Advans Pakistan Microfinance Bank, a public limited company active in Pakistan’s microfinance banking landscape, in March 2024. Previously known as Advans Pakistan Microfinance Bank, the company now operates as Halan Microfinance Bank.
Halan’s expansion strategy follows Pakistan’s increasing digitalization and vast informal economy, which mirrors Egypt’s financial landscape.
“With household loans to GDP at just 3-4%, there’s immense untapped potential. Our mission is to bridge this financial gap through technology-driven banking,” said Mounir Nakhla, Founder and CEO of MNT-Halan and Chairman of Halan Microfinance Bank.
Defending Pakistan’s economic prospects, Nakhla emphasized its underestimated market size. “Pakistan is a cash-driven economy with significant informal lending. The official size of the economy is underestimated. It’s a much larger market than perceived,” he noted.
“Providing small and micro-loans will not only help businesses grow but also be a profitable venture for us.”
With 241.5 million people and Rs9.4 trillion in circulation, Pakistan’s financial sector is ripe for digital transformation. In major business hubs, daily cash transactions reach Rs50 million, highlighting the potential for fintech solutions.
“We are motivated to digitize payments and reduce cash reliance over time,” Nakhla added.
Halan Microfinance’s goal is to become the go-to financial institution for people in Pakistan, prioritizing financial inclusion for underserved communities, Nakhla said.
Halan has already begun integrating its services into Pakistan’s financial ecosystem. The bank plans to launch its digital app this year while expanding its physical presence with 100 new branches. It is also awaiting a national banking license to scale further.
Halan Microfinance Bank has committed to investing $10 million in Pakistan in 2025, in addition to the acquisition cost. The bank aims to build a $500 million loan portfolio within five years.
“Currently, we serve 50,000 customers in Pakistan, and we are targeting 200,000 by the end of 2025,” Nakhla said. “Globally, we have served 8 million people and disbursed $11 billion across Turkey, Egypt, the UAE, and now Pakistan.”
Recognizing the demand for Islamic finance, Halan plans to offer both conventional and Shariah-compliant banking options. It is also exploring partnerships for embedded financing solutions, including advance salary and installment payments.
Pakistan’s fintech sector is witnessing rapid growth, with digital payments gaining traction. Mobile banking users have reached 19.9 million, while internet banking users stand at 12.4 million. The country’s financial ecosystem includes 32 banks, 12 microfinance banks, and multiple payment service providers, highlighting the potential for further financial inclusion.