The First MicroFinance Bank

What The First MicroFinance Bank does

The First MicroFinanceBank of Afghanistan (FMFB-A) is a licensed microfinance institution headquartered in Kabul, founded in 2004 and operating as the market leader with an estimated 67% Gross Loan Portfolio share in Afghanistan's microfinance sector. The bank serves three primary segments — individual retail customers, micro/small/medium enterprises (MSMEs), and corporate clients — across 23 branches in 14 provinces and 80 districts, supported by 9 ATMs, 6 financing processing offices, and a multi-channel digital platform.

FMFB-A's product suite is built around a Sharia-compliant Islamic banking framework, following its ongoing conversion from conventional banking under Da Afghanistan Bank directives. Core deposit products include Qard (current), Mudarabah (savings and term), and Wakala term deposit accounts. Financing products span Murabaha (cost-plus sale) for retail, SME, and corporate tiers up to AFN 300 million; Ijarah (leasing); Wakala Overdraft for SMEs and corporates; and dedicated vehicle and home appliance financing. Digital channels comprise a Flexcube-based core banking platform exposed through an online banking portal, iOS/Android mobile apps, SMS banking (on Roshan and MTN), IVR phone banking, and a Mastercard-branded payments suite (AfPay domestic debit card, Debit Mastercard, Master Prepaid Card). Cross-border remittances are delivered via Western Union and MoneyGram agency partnerships.

Revenue is generated through a transaction-fee and outcome-based pricing model: flat profit rates of 8-16% per annum on Islamic financing depending on segment, annual card charges (AFN 200 AfPay, USD 20 Mastercard), 0.20% on domestic interbank fund transfers, and fees for trade finance, bank guarantees, and bulk payroll processing. The bank is a subsidiary of the Aga Khan Agency for Microfinance (AKAM) and affiliated with the Aga Khan Development Network (AKDN), holding GABV membership since 2016 and Gold Level Client Protection Certification (2025-2028) from Inclusion [Social Ratings]. CEO Ziauddin Haidari leads the institution, which has 1,001-5,000 employees and is actively executing a Digital Transformation Strategy and Roadmap for 2025 and beyond.

Name

The First MicroFinance Bank

Legal name

The First MicroFinanceBank-Afghanistan (FMFB-A)

Website

https://fmfb.com.af

Company type

Private

Founded year

2004

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

FMFB-A is Afghanistan's largest microfinance bank (67% Gross Loan Portfolio share), offering Sharia-compliant deposit accounts, Islamic financing (Murabaha, Ijarah, Wakala), payments, and remittances to individuals, MSMEs, and corporates across 23 branches in 14 provinces.

Ownership category

akta.pro rank

Product category

Microfinance Banking

NAICS

Commercial Banking (522110), Depository Credit Intermediation (5221), Nondepository Credit Intermediation (5222), Savings Institutions and Other Depository Credit Intermediation (52218)

SIC

National Commercial Banks (6021), Functions Related To Depository Banking, Nec (6099), Short-Term Business Credit Institutions (6153), Personal Credit Institutions (6141)

akta.pro primary industry

Islamic SME & Commercial Banking (FSABAGAB)

akta.pro secondary industries

Shariah-compliant Financing Products (Murabaha, Ijara, Tawarruq, Istisna, Salam) (FSABAGAH), Islamic Corporate Banking (FSABAGAC), Islamic Trade Finance & Supply Chain (Shariah-compliant) (FSABAGAE), Islamic Transaction Banking (Cash Management & Treasury Services) (FSABAGAF)

Keywords

• Microfinance banking
• Islamic banking services
• SME financing
• Deposit accounts
• International remittances

Headquarters

HQ city

Kabul

HQ country

Afghanistan

HQ region

Asia

Offices23 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Islamic Financing Products: Revenue generated through Sharia-compliant financing products including Murabaha (cost-plus sale), Ijarah (leasing), Mudarabah (profit-sharing), and Wakala (agency-based investment). Profit rates range from 8-16% per annum flat depending on product and customer segment.
2. Account Fees and Charges: Various account-related fees including check book issuance (AFN 500-1500), card annual charges (AfPay: AFN 200, Debit Mastercard: USD 20), card replacement/re-issuance fees, and ATM withdrawal charges
3. Fund Transfer Fees: Domestic fund transfers to other banks charged at 0.20% on amount (Min: AFN 300/USD 5, Max: AFN 5,000/USD 50). International transfers subject to per-transaction and daily limits.
4. Remittance Services: Revenue from money transfer services including Western Union and MoneyGram partnerships, enabling cross-border transactions
5. Corporate Services: Fees for bulk payroll processing, bank guarantees, letters of credit, and other trade finance services

Pricing tiers

Go-to-market motion2 records

Distribution channels8 records

Marketing channels9 records

Core offering

The First MicroFinanceBank of Afghanistan (FMFB-A) provides Sharia-compliant banking services including deposit accounts (Qard current, Mudarabah savings/term deposits, Wakala deposits), Islamic financing products (Murabaha, Ijarah, Wakala overdraft, vehicle and home appliance financing), payment cards (AfPay, Debit Mastercard, Master Prepaid), and digital banking channels (online, mobile, SMS, phone/IVR, ATMs). It serves individuals, micro/small/medium enterprises, and corporate clients across Afghanistan through 23 branches in 14 provinces.

Product overview

The First MicroFinanceBank of Afghanistan (FMFB-A) operates a unified Islamic banking platform offering deposit accounts, Islamic financing products, payment cards, and digital banking channels. The core product suite includes Sharia-compliant accounts (Qard current account, Mudarabah savings and term deposits, Wakala deposits) and Islamic financing (Murabaha, Ijarah, Wakala overdraft, vehicle financing, home appliance financing). Digital services encompass online banking, phone banking (IVR), SMS banking, and 9 ATMs nationwide. Payment cards include AfPay domestic debit card, Debit Mastercard, and Master Prepaid Card. Additional services feature Western Union and MoneyGram remittances, bulk payroll processing, international transfers, and bank guarantees. FMFB-A is transitioning from conventional to full-fledged Islamic banking under Da Afghanistan Bank directives.

Differentiator

Problem solved

Functional benefit

Products and services

• Qard (Current) Account Sharia-compliant current account based on Qard al-Hasan (benevolent loan) principles for individuals and businesses, offering access to financing solutions, cards, and electronic channels without profit generation.
• Mudarabah Saving Account Islamic profit-sharing savings account for personal customers where depositors share in the bank's profits and grow their savings with flexibility for future needs.
• Mudarabah Term Deposit Islamic investment deposit account for individuals and businesses with predetermined tenors enabling monthly returns on saved funds.
• Wakala Term Deposit Islamic investment deposit for businesses where the bank acts as agent to invest customer funds under a Wakala arrangement for future planning.
• Murabaha Financing Cost-plus sale Islamic financing where the bank purchases Sharia-compliant assets and resells to customers at a pre-agreed higher price payable in installments, available for retail, SME, and corporate segments up to AFN 300 million.
• Ijarah Financing Asset-based Islamic leasing financing for individuals, microfinance businesses, SMEs, and corporates to meet asset-based needs such as equipment and property.
• Wakala Overdraft Islamic cash-based overdraft facility where the bank appoints the customer as agent to invest funds in Sharia-compliant business activities, available for SMEs (AFN 501,000-15 million) and corporates (AFN 15-300 million).
• Vehicle Financing Islamic financing for purchasing new or used vehicles for both personal and business use, with competitive rates and flexible repayment terms.
• Home Appliance Financing Consumer financing for personal customers to acquire household appliances including refrigerators, freezers, furniture, cookers, laptops, TVs, and more, with flexible monthly payment plans.
• Online Banking Web-based internet banking platform for retail and corporate users enabling money transfers, payments, account management, statement viewing, cheque book requests, and loan repayments with per-transaction and daily limits.
• SMS Banking Mobile banking service via SMS for balance inquiries, mini-statements, cheque book requests, currency exchange rates, and branch/ATM location inquiries, available for Roshan and MTN SIM card holders.
• Phone Banking (IVR) Interactive Voice Response (IVR) system for automated banking services and customer support via phone.
• Debit Mastercard International debit card accepted globally for cash withdrawals and retail transactions, with annual charge of USD 20 and withdrawal fees from USD 2-8 depending on network.
• Western Union Remittance International money transfer service available at FMFB-A branches for sending and receiving cross-border remittances through Western Union partnership.
• MoneyGram Remittance International money transfer service enabling cross-border transactions across 200+ countries and territories with access to 430,000+ MoneyGram agent locations worldwide.
• Bulk Payroll Processing Corporate business service for efficiently processing salary payments to multiple employees of an organization.
• International Transfers Service enabling customers to initiate international payments from their bank accounts without visiting the branch.
• Bank Guarantees Trade finance product providing bank guarantees and letters of credit under non-funded facilities for corporate and business clients.

Quantifiable outcome

• 67% market share in Gross Loan Portfolio in Afghanistan
• +2 more outcomes

Named customers1 record

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration6 records

Feature5 records

Partnerships

Six partnerships are on record, tiered core.

• Inclusion [Social Ratings]coreOthers · 16 August 2025Inclusion [Social Ratings] is an international social rating agency specializing in responsible finance and social performance assessments. They awarded FMFB-A the Gold Level Client Protection Certification, aligned with CERISE+SPTF Universal Standards, valid for 3 years (2025-2028).
• Global Alliance for Banking on Values (GABV)coreStrategic or Co-development Partner · 1 January 2016Since 2016, FMFB-A is a member of GABV - an independent network of banks using finance to deliver sustainable economic, social, and environmental development. FMFB-A's values-based banking agenda focuses on affordable financial services promoting entrepreneurship, agriculture, incremental housing, and clean energy.
• MoneyGramcoreChannel Partner/ Reseller/ DistributorMoneyGram is one of the world's leading money transfer services enabling fast, reliable, and secure cross-border transactions in 200+ countries and territories. FMFB-A provides MoneyGram services enabling customers in Afghanistan to send and receive international remittances.
• Western UnioncoreChannel Partner/ Reseller/ DistributorWestern Union money transfer service available at FMFB-A branches for international remittance services.
• CERISE+SPTF (Universal Standards of Social Performance Management)coreOthersCERISE+SPTF Universal Standards serve as the global benchmark for responsible financial services and client protection. FMFB-A's Gold Level certification is aligned with these standards.
• Da Afghanistan Bank (DAB)coreOthersDa Afghanistan Bank is the central bank of Afghanistan and the primary regulator for FMFB-A. The bank is licensed and regulated by DAB, and is undergoing conversion to Islamic banking in compliance with DAB directives.

Scale indicators8 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Akhuwat: Pakistan's largest interest-free microfinance institution offering Qard-al-Hasan loans to underserved borrowers. Directly comparable as a Sharia-compliant microfinance lender operating in a neighboring, similar South Asian frontier economy with overlapping MSME and microfinance customer base.
• Kashf Foundation: Pakistan-based microfinance institution serving low-income female entrepreneurs with Islamic and conventional microfinance products. Comparable as a values-aligned microfinance lender with similar social mission and small-ticket lending model.
• ASA International: Netherlands-listed microfinance institution operating across South and Southeast Asia (including Afghanistan-adjacent markets). Comparable as a scaled microfinance lender serving low-income borrowers through standardized group lending methodologies and branch networks.

Broad incumbents

• Meezan Bank: Pakistan's leading full-fledged Islamic bank offering Sharia-compliant retail, corporate and trade finance products. Comparable as a comprehensive Islamic banking franchise in a neighboring South Asian market with similar product taxonomy (Murabaha, Ijarah, Mudarabah).
• BRAC Bank: Bangladesh's largest SME-focused bank with a dedicated microfinance subsidiary (BRAC). Comparable in mission to serve MSMEs and underserved borrowers through branch networks and digital channels, though operating at significantly larger scale.
• Aga Khan Microfinance (AKAM global portfolio): The parent AKAM network of microfinance institutions across 15+ countries (including FMFB-A itself). Directly comparable as the parent organization's broader portfolio providing benchmarks for cross-border microfinance scaling strategy.

Regional players

• Al Majmoua: Lebanon's leading microfinance institution offering individual and group lending to micro-entrepreneurs. Comparable as a values-aligned microfinance lender serving SMEs in a politically and economically unstable Middle Eastern market.
• Tameer Microfinance Bank (now Mobilink Bank): Pakistan's first licensed microfinance bank (now Mobilink Bank), offering microfinance and branchless banking. Comparable as a South Asian microfinance bank transitioning toward digital delivery and serving underbanked populations.
• Afghanistan International Bank: One of Afghanistan's private commercial banks offering corporate, retail and trade finance services. Comparable as a domestic banking competitor for MSME and corporate financing customers within the same fragile Afghan operating environment.
• Al-Amal Microfinance Bank: Yemen-based Islamic microfinance bank offering Sharia-compliant financing and deposit products in a similarly fragile, conflict-affected economy. Comparable as a frontier-market Islamic microfinance operator navigating political and security risk.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/FMFB_Af
• Facebookfacebook.com/fmfb.afghanistan
• LinkedInlinkedin.com/company/fmfb-a/mycompany
• Instagraminstagram.com/fmfb_a

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about The First MicroFinance Bank