Client Name

Haball Private Limited

Faculty Advisor

Dr. Irum Saba, Associate Professor & Program Director MS-IBF, Institute of Business Administration, Karachi

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

The study highlights how fintech fosters an inclusive, entrepreneurial ecosystem by enabling cashless transactions and online business models, reducing operational costs, and supporting SME growth. It also conducts a financial feasibility analysis to assess long-term viability, credit risk, returns, and regulatory concerns. These insights help banks, fintech firms, and regulators make informed decisions about venture financing, risk management, and revenue models—essential for expanding SME banking portfolios in a rapidly evolving financial landscape.

Aligned SDGs

GOAL 9: Industry, Innovation and Infrastructure

Aligned SDGs Justification

Industry, Innovation & Infrastructure: Promotes fintech solutions like mobile banking and e-wallets, improving access to financial services and driving innovation in underserved areas.

NDA

Yes

Abstract

This report largely explores the sustainability, architecture and likely economic implication of a community solution to SME banking in Pakistan by the use of a digital platform. More than 5 million small and medium enterprises (SMEs) are the pillars of the Pakistani economy because 80 percent of workforce in non-agricultural sectors and over 40 percent of country GDP is contributed by such enterprises. SMEs remain largely excluded in formal financial institutions due to tightly regulated bans, absence of credit history, financial illiteracy and limited access to electronic banking infrastructures, irrespective of the importance of SMEs in the economy.

The research provided a mixed-methods study design that included financial model, market research, and qualitative interviews to answer such questions. As it was revealed in the findings, neither the services, offered by the traditional banks, nor the realities of SME operations could be as synchronized as they should have been. The majority of the small businesses especially, the informal and rural, cannot utilize the traditional banking services because of the strict Know-Your-Customer (KYC) procedures they have to go through, high transaction costs, collateral requirements, and delays in approving the loans.

In turn, this study proposes a digital banking product to SMEs developed in collaboration with the leading B2B Fin-tech firm in Pakistan Haball Private Limited. The platform that will be equipped with features such as digital onboarding, QR payment, automation of bookkeeping, grading of credit with the assistance of AI, and microfinance and Shariah compliant services will offer a one-stop-shop business banking experience to SMEs. To fix scalability and real use, a working model was developed. It has provided the financial model to include its conservative operating assumptions and macroeconomic assumptions that show profitability within the first three years of launch. Its important figures such as the net profit margin, return on assets, and current ratio ever increase throughout the forecast period, which indicates scalability of operations combined with positive financial position state. It is more liquid at all points, low payback value, asset and equity-funded.

Ultimately, this paper proves that the SME digital banking project is a viable response in the long term as a socially useful, flexible, and scalable solution. It not only fills the gap in the financing of SMEs but also empowers national development goals given that we increase financial inclusion, economic development, and technological innovation.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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