Innovative ways of lending extends.

Byline: KHALIL AHMED

Consumer financing plays key role in life of the households Financial, economic and social status getting stable Interview with Mr. Rehan Ahmed Yousfi - a seasoned banker

PAGE: Tell me something about yourself:

Rehan Ahmed Yousfi: Currently, I am working in the capacity of Regional General Manager Faysal Bank which is the second largest Islamic Bank in Pakistan. I have more than 18 years of diversified experience in the banking sector. If I glimpse into my past experience, I started my carrier as a mortgage financial consultant in 2005 at ABN AMRO Bank and still have an association with retail banking. I completed my master's program in Islamic banking and finance from Karachi University and BSc honors in Economics, Maths and Statistics also from Karachi University.

PAGE: In the Pakistani banking sector, the evolution of the consumer financing portfolio is a more recent phenomenon, as banks have traditionally focused on lending to the corporate sector and public sector entities, what is your take on it?

Rehan Ahmed Yousfi: Yes indeed! banks used to focus on stereotype ways of lending in the past but nowadays banks have adopted innovative ways of lending to capture the market and increase their revenue. In my opinion, the most important element of consumer finance is to raise the standards of living by purchasing various consumption needs. It is quite easy for consumers to access those items which are out of reach for them or they cannot buy at once.

We basically target the real market such as salaried or self-employed individuals, who are having documented evidence of income along with the capability of repayment of funds. Banks place a strong mechanism to evaluate customers whether he is eligible for the same or not. Some of the examples like mortgage finance, personal loan, credit cards and auto finance and time by time every bank changes its ways to introduce new products which comprise the above-mentioned facilities.

PAGE: Your perspective on various categories of consumer finance:

Rehan Ahmed Yousfi: In my view, it plays a very important role in the day-to-day life of the households. Typically, they pursue loans for personal requirements such as renovation...