Khushhali Microfinance Bank (KMBL) plans to open 10 new branches and 28 service centers in 2017. Pakistan’s largest and oldest micro finance bank is aiming to increase its reach and customer base through expansion in the rural markets and the northern areas of Pakistan.

The 10 new branches will cater to the agriculture sector and small and medium enterprises. In addition to the branch openings, KMBL is connecting remote areas through service centers, which will act as touch points for people living in distant areas. The focus of this expansion is to further group lending amongst communities of small farmers.

For the customer's ease, all cash transactions will use Easy Paisa, Jazz Cash and Omni. KMBL believes in strengthening the infrastructure of the country through working together, which is the idea behind partnering with telecommunication companies for this venture.

Speaking about the driving factor behind the expansion plan, President  Khushhali Microfinance Bank, Ghalib Nishtar, said that opportunity drives us and there is a huge untapped potential in the remote and northern markets.

“One of Pakistan’s biggest challenges is that despite all the efforts, the penetration remains low in rural markets but our aim is to deepen our reach and go closer to our clients. The rural economy has a lot of potential to increase livelihood and improve food security. As market leaders, we feel responsible on behalf of the entire sector to increase outreach to the customers in need”, he added.

Head of Retail at Khushhali Microfinance Bank, Amina Hassan, mentioned that competition is also one of the driving factors of this growth.

“This year’s expansion strategy is to reach areas that are difficult for competition to follow. This expansion will help us reach new markets and a greater customer base”, she said.

Apart from rural markets, another area of focus for KMBL is the Gilgit-Baltistan area. This is driven by the requirements of the China Pakistan Economic Corridor (CPEC). The CPEC is opening new business opportunities for people in northern areas everyday, making a bank in the region a necessity.

Speaking about the challenges, Amina Hassan said that access and monitoring are a challenge due to the geographical location. “We aim to overcome these challenges by hiring employees from those locations. Our staff that hails from rural areas will be relocated back to their hometowns. This shows that branches in rural and northern areas are not only aiding in business but are also improving employment opportunities in the region”, she said.

Khushhali Microfinance Bank’s expansion supports the State Bank of Pakistan’s financial inclusion agenda, which concentrates on reaching out to remote areas. KMBL is aiming to expand its network to 149 branches over Pakistan by the end of 2017.