Pakistan—SAFCO Digital Transformation

Client: FMO

Duration: 2025-2026

Region: Asia and the Pacific

Country: Pakistan

Solutions: Economic Growth Digital Acceleration

Access to finance for micro, small, and medium-sized enterprises (MSMEs) remains a significant challenge in Pakistan. SAFCO Microfinance Company, a leading microfinance institution (MFI) operating in Sindh, has partnered with FMO to address this issue and expand financial services to underserved communities. These include enterprises, SMEs, women, farmers, and populations affected by climate change. SAFCO provides customized financial products to assist these groups in growing and adapting, backed by suitable technology and cybersecurity measures. The institution adopts a customer-first approach, emphasizing recurring clients through community mobilization and group lending.

DAI is supporting the digital acceleration of SAFCO under the  Digital Transformation (DTX) Technical Assistance Facility, a framework funded by FMO, the Dutch development bank.

SAFCO has identified four key actions to accelerate its digital transformation and better serve MSME customers:

  • Reduce loan processing time from the current 15 days through process automation and streamlined workflows.
  • Foster a data-driven culture by investing in data systems and enhancing staff data literacy.
  • Build digital capacity across the organization to fully leverage available technology.
  • Strengthen cybersecurity to ensure resilience and reliability.

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Sample Activities

  • Conduct a comprehensive digital gap assessment to evaluate SAFCO’s current technology landscape, digitization maturity, and cybersecurity readiness to identify vulnerabilities and provide mitigation strategies that align with global standards.
  • Develop actionable recommendations aligned with international best practices to enhance operational efficiency, security, and scalability.
  • Deliver digital capacity-building training for SAFCO teams to strengthen internal capabilities in using digital tools and data systems and enable informed decision-making through improved data literacy and usage across departments.
  • Monitor progress and adapt interventions throughout the project to ensure sustainable digital transformation and long-term impact, strengthening SAFCO’s position as a trusted, leading MFI in Pakistan.
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