Readings from 5/18/2022
During this summer break, I'm reading a ton of articles about various industries, markets, and best practices. I'll be posting a somewhat random assortment of my distillations
Building financial empowerment in Pakistan through fintech
The State Bank of Pakistan (SBP) is looking to digital challenger banks as part of a long-term economic strategy
Three trends to take note of
Only 21% of adults in Pakistan have bank cards (compare: 80% India and 50% Bangladesh) + teledensity at 85% --> fintech can provide digital banking services can help issues of accessibility
Consumers prefer informal/semi-formal credit lines (30%) compared to a more complicated and time-consuming formal credit line (3%). --> fintech can offer customers seamless access to credit that is simple, competitive and fast to be deployed
Even having high teledensity, Pakistan is a heavily cash-based economy, which demonstrates institutional weakness and a informal economy reliant on cash
Demand for Islamic fintech: shariah-compliant financial products.
In emerging markets, fintech is symbolic of a wider social and cultural transformation on preconceptions about modern banking, empowers populations and promotes financial inclusion.
SBP gave quota of five digital banks to begin operations in the country and has launched a licensing & regulatory framework
Gilead helped effectively spread HIV healthcare into LMICs with a sustainable business model. Broadly, here are some of the problem/solutions the paper covered.
Problem: delays in regulatory approval.
Solution: improve drug registration by working with network of business partners to submit regulatory dossiers on a country by country basis.
Problem: pricing ARVs because COGS are too high for LMICs.
Solution: lower COGS by creating a voluntary license model (5% royalty fees) to Indian generic manufacturers. the price per bottle went from $12.42 to $1.80.
Problem: limited healthcare infrastructure/lack and cost of diagnostics. treatment-related costs to the patient (transportation).
Solution: partnerships & health systems strengthening.
Other readings from today: