Kashf Holdings Private Limited
Financial Services for Low-income Markets
Kashf is a pioneer in extending access to financial products to poor customers.
SNAPSHOT
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Kashf Holdings Private Ltd. is a group of companies in Pakistan that provide specialized financial services – including micro-savings, micro-insurance, housing finance – to low-income households.
The Challenge
- A 2005 study of 99 countries by the World Bank concluded that greater levels of financial outreach are tied to higher levels in standard economic development indicators.
- According to a 2007 report by the Asian Development Bank, no more than 10% of the low income market in Pakistan has access to financial services.
- Traditionally, commercial banks are not interested in serving lower income populations because transaction costs for smaller loan sizes are too high and conventional collateral requirements cannot be met.
The Innovation
- Kashf Holdings Private Ltd. will establish a group of companies providing a suite of specialized financial services - micro-savings, micro-insurance, housing finance - to different segments of low income households.
- Kashf Foundation has scaled from 10,000 clients in 2002 to over 300,000 clients at the end of 2008. It is well positioned to reach over 1 million clients with a national branch network offering a range of financial services.
- Kashf is diversifying into new product areas and is well positioned to develop and distribute new financial products to the base of the pyramid on a scalable basis.
The Impact
- The Holding Company structure will enable the group to further its vision for financial inclusion for low-income communities by tapping into 'patient capital' investors who are motivated to create long-lasting models serving low-income markets, particular women, to access a range of financial services.
- As a result, over 5-7 years, more than 1 million families will have access to a suite of financial services tailored to meet their needs.