Empowering SMEs & Entrepreneurs: How Mashreq NEOBIZ is Revolutionizing Business Banking in Pakistan

With more than 5.2 million small and medium enterprises (SMEs), Pakistan’s SME sector remains one of the most significant pillars of the economy. SMEs contribute 40 percent to the Gross Domestic Product (GDP), account for 25 percent of exports, and employ nearly 78 percent of the non-agricultural workforce. Despite this impact, the vast majority of SMEs continue to operate on the margins of formal finance. Most remain unbanked, relying heavily on cash and informal systems that restrict growth and long-term sustainability. “SMEs in Pakistan have shown incredible resilience. However, they have never been given the tools or trust they deserve from the financial system,” says Syed Jaffar Abbas Shirazi, Head of NEOBIZ at Mashreq Pakistan. “SMEs have long been treated as risky businesses. But, they are actually resourceful, adaptive, and vital to the economy. The real risk lies in continuing to ignore their needs.” Jaffar, who brings over 15 years of experience in digital banking, fintech, and SME enablement, is now leading the charge for NEOBIZ – a digital-first business banking platform tailored for Pakistan’s underserved entrepreneurs. “NEOBIZ is not about replicating a traditional bank on a mobile screen. It is about solving real problems associated with traditional banking and SME finances,” says Jaffar. “A shopkeeper should not need to visit a branch, print paperwork, or wait for weeks just to open an account. That process is outdated. NEOBIZ offers a completely digital, paperless, and frictionless experience.” The platform enables SMEs to open accounts instantly and make and receive payments. The tools, features, and benefits are not limited to banking; they are also designed to help entrepreneurs run their business more efficiently. While NEOBIZ is new to Pakistan, it draws from valuable insights gathered through Mashreq’s extensive work with SMEs in the UAE. The team engaged directly with freelancers, micro-retailers, and home-based entrepreneurs to understand their day-to-day challenges and business behaviors. These conversations helped shape the core features of the platform. “We spoke to real business owners in the UAE; people running small shops, catering businesses, and online stores. Their input shaped the way we designed everything, from account setup to transaction flows. As we enter into and scale in Pakistan, we are committed to doing the same; listening, adapting, and building around the realities of local SMEs.” Pakistan’s informal economy accounts for over 72 percent of the non-agricultural workforce. Most of these businesses have no formal registration or credit history, making access to credit almost impossible under conventional models. NEOBIZ takes a different route. “Instead of asking for collateral or years of audited statements, we use transaction data and digital behavior insights to understand the customer’s reliability,” explains Jaffar. “A small but steady cash flow speaks volumes. Consistency matters more than size.” Many of Mashreq Pakistan’s target customers have never opened a digital account before. “That is exactly the demographic we are focused on,” says Jaffar. “The woman running a home kitchen, the tech freelancer based in a tier-two city, the retail trader who wants control without complexity. These are the people for whom we are building NEOBIZ.” Although Mashreq originated and built out this platform in the UAE, Jaffar is quick to emphasize that NEOBIZ is being developed with a local-first mindset for Pakistan. “This is not a copy-paste model from the UAE. This is a banking solution built from the ground up, specifically designed for Pakistan’s unique challenges. It is grounded in local realities and informed by local voices,” he explains. In the future, NEOBIZ will expand to include embedded lending, insurance products, and cash flow analytics powered by AI. However, Jaffar remains focused on ensuring the platform delivers value today. “Financial inclusion is not about technology alone. It is about accessibility, trust, and relevance,” he says. “We are not asking SMEs to catch up with us. We are building NEOBIZ to match their pace, their priorities, and their potential.” Pakistan’s digital landscape is evolving, with regulatory frameworks such as the State Bank of Pakistan’s Digital Bank Licensing regime and Raast payment infrastructure laying the foundation for broader inclusion. NEOBIZ is positioned to complement these initiatives by offering experiences that empower businesses. Mashreq is entering the Pakistani market with a clear understanding of its complexities. And so, this is not a plug-and-play rollout; it is a banking model shaped by what small businesses actually need. In a country where formal banking often feels out of reach, NEOBIZ is cutting through the noise with tools that work in the real world. It is thoughtful, grounded, and built to make a difference. “Ultimately, our goal is not just digital banking. Our goal is a digital partnership for economic upliftment,” concludes Jaffar. “Because when SMEs grow, the country and its economy grow with them.”