ENABLING A QUANTUM LEAP IN

WOMEN ENTREPRENEURSHIP

By:
Mrs. Shafqat Sultana
President & CEO
First Women Bank Ltd.
 MODEL OF EMPOWERMENT
BY
JOHN SNOW INC. RESEARCHERS
1. Sense of self and vision for future
2. Mobility and Vision
3. Economic Security
4. Status and decision making power, within the
h
household
h ld
5. Ability to interact effectively in public sphere
6
6. Participation in non family groups

FINANCIAL SERVICES DESK

 CHALLENGES FACED BY WOMEN
ENTREPRENEURS WORLDWIDE

1. Legislation limits
2
2. Limited access to education opportunities
3. Cultural factors, societal views and societal
p
perceptions
p
4. Limited access of women to management
training and relevant job opportunities
5
5. Family responsibilities

FINANCIAL SERVICES DESK

 PAKISTAN TODAY
Total Population 158.17 M
Male Female
Total Population 80.82 M 77.35 M
51.10 % 48.90%
Labor Force 40.24 % 10.07 %
Literacy Rate 67 00%
67.00% 42 00%
42.00%
Labor Force Participation 69.20% 18.04%
Rate (RAR)
Idle Population * 29.70% 85.90%

Source : Economic survey of Pakistan

FINANCIAL SERVICES DESK

 WOMEN ENTREPRENUERSHIP FOUR
PRAGMATIC PROFILES BASED ON THE
MOTIVATION

1. The motivated businesswomen

2. Women co-entrepreneurs
3
3. W k d entrepreneurs
Week-end t
4. One job- one entrepreneur

FINANCIAL SERVICES DESK

 FIRST WOMEN BANK LTD.
world’s
ld only
l bank
b k for
f women

Transforming the status of women from

‘passive beneficiaries, to ‘dynamic
agents of change’

FINANCIAL SERVICES DESK

 UNIQUE CHARTER
FWBL was established with the fundamental objective as laid
down in Article III (1) (a) of its Memorandum and Articles of
Association::
Association
“Undertaking the conduct of all forms of business of a
Banking Company in a manner designed to meet the special
needs of women, to encourage and assist them in promotion
and running of trade and industry and practice of
profession”.
profession”
f i ”.

FINANCIAL SERVICES DESK

 FWBL CREDIT POLICIES
The Bank’s unique credit policies promote asset ownership for women and
customized to the specific economic needs of women. women The Bank
considers:
ƒ Financing to business entity:
• where women have 50% shareholding
shareholding,
or
• where a woman is the Managing Director,
or
• where women employees are 50% or more more.
ƒ Financing to male borrowers against 100% cash collaterals.
ƒ Financing to multinational companies, public limited companies and
government run institutions are exempted from the above conditions.
ƒ Participation in Syndicate financing for both fund-based and non-fund
based facilities, within the Bank’s set parameters.

FINANCIAL SERVICES DESK

 VISION

“To be the lead Bank for women:

Dynamic, adaptive & responsive
to their special economic needs,
offering the best financial services
and
a d the
e bes
best ba
banking
g p
practices”.
ac ces

FINANCIAL SERVICES DESK

 THE MISSION
Our mission is to be a financially sustainable bank with a
specialized focus on promoting economic prosperity and self-
reliance in women of urban and rural areas by:

• Transforming the status of women from ‘passive beneficiaries

of social services
services’ to ‘dynamic
dynamic agents of change
change’..

• Promoting asset ownership, through its unique credit policies.

Contd…

FINANCIAL SERVICES DESK

 THE MISSION
• Promoting entrepreneurs through computer literacy and
business centers for skill enhancement,
enhancement product development
and business management.
• Facilitating their access to financial services by providing
support through its Financial Services Desk on Corporate
affairs, Credit management and Trade
• Finance activities and advise on Legal, Taxation and Marketing
issues.
• Providing extensive banking training through FWBL’s training
institute and collaboration with other banking institutes of repute.

FINANCIAL SERVICES DESK

 WOMEN
O
DEVELOPMENT
COMPARISON OF GENDER-
GENDER-WISE CLASSIFICATION OF BORROWERS
Institutions Male Clients Female Clients*
First Micro Finance Bank (Source:SBP) 88.0% 12.0%
Khushali Bank (Source:SBP) 65.0% 35.0%
Aga Khan Rural Support Programme (Source:ILO) 91.0% 9.0%
National Rural Support Programme (Source:ILO) 80.0% 20.0%
Punjab Rural Support Programme (Source:ILO) 77 0%
77.0% 23 0%
23.0%
Bank of Khyber (Source: MIXMarket website) 90.4% 9.6%
Orangi Pilot Project (Source: MIXMarket website) 91.7% 8.3%
Sind Agricultural
g and Forestry
y Workers’ Coordination
Organization (Source: MIXMarket website) 52.3% 41.7%
First Women Bank Limited 20.0% 80.0%

FWBL has best out reach to women with the lowest markup rate
between 14% – 16% for micro-
micro-borrowers
* (Other Commercial & Investments banks do not maintain gender-
gender-wise data)

FINANCIAL SERVICES DESK

 FWBL MODEL
Catering
C i to women at all ll
socio--economic levels
socio

Micro, Small Medium & Corporate

FINANCIAL SERVICES DESK

 FWBL Model of Micro
Micro--credit,
credit
SME and Corporate 1989 - 2008
Portfolio No. of % of Amount disbursed Amount
B
Borrowers B
Borrowers R iin Milli
Rs. Million %

Micro 34,993 76.11% 1,750.038 9.19%

SME 10,934 23.78% 12,245.260 64.30%
Corporate 24 0 05%
0.05% 4 048 957
4,048.957 21 26%
21.26%
Syndicate 27 0.06% 999.910 5.25%
TOTAL 45,978 100.00% 19,044.164 100.00%

MICRO CREDIT
Direct beneficiaries 219,003
No of house-holds Financed 1,533,021
Employment Opportunities Created 547,508
The Bank has the best outreach to women: to date Rs. 19.0 billion has been
disbursed, of which Rs. 13.3 billion has been disbursed to women, which constitute
70% financing to women.

FINANCIAL SERVICES DESK

FINANCIAL SERVICES DESK
SUPPORT
SERVICES

FINANCIAL SERVICES DESK

 SUPPORT SERVICES

• Business Development Center

• Computer Literacy Center
• Financial Services Desk

FINANCIAL SERVICES DESK

 BUSINESS DEVELOPMENT CENTRE

ƒ In-house facility for fax

fax, Computers
Computers, Internet
ƒ Business management and skill training courses
for women entrepreneurs
entrepreneurs.
ƒ Exhibition, display and sale of products for
women
ƒ 6500 women trained through Business Centers at
Karachi, Lahore and Islamabad

FINANCIAL SERVICES DESK

 COMPUTER LITERACY CENTRE

ƒ Computer Training for urban poor

poor, unemployed and
business women.
ƒ 6,784 women trained in computer skills at Karachi,
Lahore and Islamabad

FINANCIAL SERVICES DESK

 FINANCIAL SERVICES DESK
The most powerful Credit Product
with the core purpose to truly identify,
support and empower women in
business with five important
components.
components
To-date FSD has financed 1030 business entities
To-
i
involving
l i ffresh
h di
disbursement
b t off lloans amounting
ti
to Rs. 9,309.7 million since 2003.

FINANCIAL SERVICES DESK

FINANCIAL SERVICES DESK

• Credit
C dit Management
M t
• Trade Finance
• Legal Counseling
• Tax Consultancy
• Marketing
M k ti

FINANCIAL SERVICES DESK

PRODUCTS

FINANCIAL SERVICES DESK

 PRODUCTS
• Micro Finance
• Group Guarantee Loan
• Business Loan for Women
• First Car
• First Home
• Personal Loan

FINANCIAL SERVICES DESK

 Micro Finance

Promoting Micro Businesses & Small Loan

ƒ Loan Amount:
R 5
Rs. 5,000
000 - 25,000
25 000
Rs. 25001- 50,000
Rs. 50,001- 100,000
ƒ Lowest Markup Rate 14-16%
ƒ Personal Guarantees
ƒ Easy Repayments

FINANCIAL SERVICES DESK

 Micro Finance

Group Guarantee Loan

ƒ Loan Amount:
Rs. 25001- 125,000
Rs. 50,001- 125,000
ƒ Group Guarantees
ƒ Minimum group of 5 women
ƒ Easy Repayments

FINANCIAL SERVICES DESK

 Business Loans For Women

Promoting Entrepreneurship & Business Assets Ownership

ƒ Financing Rs. 0.1 Million to Rs.

2.0 Million.
ƒ Women in Business
ƒ Hypothecation of Business
A
Assets
t
ƒ Two personal guarantees

FINANCIAL SERVICES DESK

 First Car

St
Steer your own di
direction
ti
ƒ For Salaried and Business-
women

ƒ Markup at Concessionary
rate

FINANCIAL SERVICES DESK

 First Home

Promoting Personal Asset Ownership

ƒ Financing Rs. 0.2 M to
Rs. 7.5 M
ƒ Low mark up rate
ƒ Choice of 5 to 15 years
repayment plan.
ƒ Promoting Asset Ownership
of Women

FINANCIAL SERVICES DESK

 FWBL

A unique financial
institution – a
combination of
commercial bank & DFI
catering to the socio-
economic needs of women
in the world

FINANCIAL SERVICES DESK

Thank You