UnaFinancial, a Singapore-based fintech group of companies, signed a partnership agreement with JSCB Microcreditbank (MKBANK), a commercial bank in Uzbekistan to establish a microfinance organisation in the country.
The joint company will provide instalment loans to micro-entrepreneurs with repayment terms of three, six and nine months. UnaFinancial will hold a controlling interest with 60 per cent.
The partnership will combine UnaFinancial’s expertise in developing fintech solutions and Microcreditbank’s track record and strong position in the local market.
Headquartered in Singapore, UnaFinancial has been offering digital financial services across Asia and Europe since 2015. The Group has already deployed similar solutions in other markets of its presence.
Almaz Torutayev, Regional Director for Central Asia at UnaFinancial, commented, “Step by step, we are fulfilling our expansion strategy in promising markets of Central Asia. We started our path in the region in 2015 with the launch of a lending service in Kazakhstan. Now, we are excited to enter Uzbekistan through our partnership with Microcreditbank. We are honoured to take this opportunity and become a part of this collaboration.”
He said that the microfinance sector in Uzbekistan is currently experiencing strong growth, adding that since 2018, the size of loan portfolios has nearly doubled from 104 to 210.
“We hope that our new product will make its contribution to the development of the local market. We aim to make it convenient and accessible in all regions of the country, helping more customers to get financing to develop their businesses,” continued Almaz.
Akmal Khamidov, the first deputy chairman of the management board of MKBANK, is confident that by combining UnaFinancial’s proven track record with MKBANK’s local market knowledge, MKBANK can establish a formidable force in the microfinance landscape.
He added, “We will provide comprehensive support to the new MFO, offering local expertise, branch infrastructure, and resources to ensure high-quality financial services for our clients.”
MKBANK is a state-owned financial institution with a robust financial foundation exceeding USD1.5 billion in assets and USD320 million in equity. It is dedicated to fostering financial inclusion, supporting small businesses and entrepreneurs, and promoting economic development, particularly in rural areas. With its diverse portfolio of financial products and services, MKBANK empowers communities and contributes to a thriving Uzbek economy.
