cat/credit-and-financial-information
In this study, the OECD Working Party on SMEs and Entrepreneurs (WPSMEE) examined a variety of barriers on the supply and demand side of finance markets that limit SMEs uptake of alternative financial instruments. The study also covers trends in policy measures to support the development of alternative finance instruments for SMEs. According the report, the main areas of constraints for the demand and supply side include:
Demand Side
Financial inclusions is one of the largest challenges SMEs face today. In part two of Dhaka Tribune’s “At the Core of Our Potential” series, banker, Tarique Afzal sheds light on why this area is restricted for SMEs.
· Banks are more focused on urban-based lending
· Banks are at times reluctant to delegate to rural branch levels
· Lack of interest among skilled bankers to relocate to rural areas
· Uncertainties of the small industries due to lack of skills and knowledge of the borrower
· Economic fluctuations
The report analyses a unique data set, provided by Finfind, of SMME funders and SMMEs seeking finance. It was sponsored by the SA SME Fund and identifies access to finances challenges, gaps and potential solutions. The Finfind 2017 cleaned data sample of 11 033 SMME funding requests is larger than the South African GEM report and is one of the most comprehensive studies on access to finance in the SMME sector in this country.
A report by Wylde International indicated that about 68 percent of SMEs in Kenya lacked access to finance due to interest rates capping. This cap was the second largest problem SMEs faced in 2017. “Only 14 percent of SMEs increased revenue above 25 percent,” according to the report. Kenyan banks have turned to external funding to alleviate the asset-liability issue.
The European Banking Authority (EBA) published the first products of its FinTech Roadmap, namely (i) a thematic report on the impact of FinTech on incumbent credit institutions' business models and (ii) a thematic report on the prudential risks and opportunities arising for institutions from FinTech.
The European Banking Authority (EBA) published the first products of its FinTech Roadmap, namely (i) a thematic report on the impact of FinTech on incumbent credit institutions' business models and (ii) a thematic report on the prudential risks and opportunities arising for institutions from FinTech.
Today’s lenders are increasingly considering alternative credit data sources to fuel better decisions and gain a more holistic view of the consumer. But what supplemental data should be used? How can a financial institution find the right data to expand their lending universe, and at the same time mitigate risk?
Global SME Finance Forum 2018 on November 5 to access study visits to financial institutions and fintechs that have best in class, innovative ways of serving SMEs clients.
The World Credit Union Conference attracts industry professionals, global regulators and market experts committed to forward thinking and continuous improvement.
Attendees will get a chance to see keynote presenter Chris Skinner, Fintech Consultant & Best-Selling Author; Shivvy Jervis, Award-Winning Futurist; and Ron Kaufman, Global Thought Leader on Customer Service during this four-day event.
This report focuses on practices aimed at improving SMEs access to finance in three areas—credit reporting, secured lending and insolvency. Each section uses data collected by the World Bank Group's Doing Business team to describe how various practices recommended by existing research have been implemented in economies across the world.
