Khushhalibank partners with Western Union for global remittance

ISLAMABAD –– Khushhalibank, the largest microfinance bank in Pakistan, and Western Union, a leader in global payment services, have announced a commercial agreement to introduce international inbound remittance services in 76 districts across Pakistan where Khushhalibank operates, starting with Karachi, Lahore and Rawalpindi.

Khushhalibank is the first microfinance institution in Pakistan to introduce the cross border inbound remittance service, thereby facilitating a large segment of rural population to receive money from overseas through Khushhalibank’s wide network of 109 branches.

It focuses primarily on low-income segment with a mandate to establish a sustainable platform of financial services to the underserved communities. To use this service, end-users do not need an account with Khushhalibank, but would be able to receive cash within minutes from Khushhalibank counters, by providing the Western Union 10-digit MTCN (Money Transfer Control Number) to the bank teller along with a copy of their CNIC.

According to a recent survey by State Bank of Pakistan, the total overseas remittances received in FY10 showed an impressive increase of 14% from FY09. Similarly, $841.44 million received in June 2010, beat the previous record of $806.12 million received in September 2009. Foreign remittances make up for 4% of the country’s GDP. This alliance will bring about a structural change in the remittance system and would help in Khushhalibank’s prime objective of poverty alleviation.

“This agreement marks a strong and mutually beneficial alliance between Khushhalibank and Western Union. Money-transfer services that deliver value are important for rural customers who need to receive money from abroad and, in particular, for our 400.000 active borrowers who are developing a long-term relationship with our bank. The agreement with Western Union allows us to be the first microfinance bank in Pakistan to provide an international money-transfer service.” Says Ghalib Nishtar, President Khushhalibank

Ms. Sobia Rahman of Western Union stated, “Transferring money with convenience and efficiency is one of Western Union’s core objectives. It is a commitment we make to all our customers. Now we are looking forward to welcoming the unbanked population to our community and giving them an opportunity to receive cash from all around the globe with ease. We offer you nothing less.”

Leave a Reply