cat/credit-and-financial-information
The Banker Africa features fintech developer MES & DAK Corporation, which is not targeting the big companies, but rather focusing on the micro SME (MSME) and SME sector to help bridge the $380 billion credit fiancing gap in the Africa and Middle East region for SMEs, and provide business and financial consultancy services thorough a mobile app and a desktop application.
Data Analytics and Digital Financial Services Handbook is a practical guide on how to leverage data for developing products, managing operations and using data-driven credit scoring models. It is a handbook for banks, mobile network operators, MFIs and payment service providers on how to implement a systematic, data-driven approach in their DFS operations. It follows the popular releases of the previous handbooks in the series: Risk Management and Digital Financial Services and Alternative Delivery Channels and Technology.
Moderator:
The World Bank's Development Research Group, in collaboration with its Finance and Markets Global Practice, in Kuala Lumpur has just produced a new Research & Policy Brief, entitled “Addressing the SME Finance Problem,” written by Facundo Abraham and Sergio Schmukler. It shows that although small and medium enterprises (SMEs) provide employment to a large share of the labor force in developed and developing countries, they receive limited external funding compared to large firms and face a substantial financing gap.
The Brief explores:
Microfinance is a $92 billion industry, with more than 100 million borrowers in more than 75 countries around the world.
Various studies have found that banks have neglected the needs of small businesses when it comes to delivering digital services for reasons including the impact of complex ownership structures on customer onboarding and difficulties establishing creditworthiness of early stage businesses, says eter-Jan Van de Venn, CCO of Five Degrees.
The persistent increase in bad loans has crippled Bangladesh’s banking sector, mostly affecting the state-owned banks.
The recent Equifax data breach left many of us thinking about larger issues. “What value do the three big ratings bureaus, Equifax, Experian and TransUnion, provide today in our emerging digital economy? Not only do these agencies dangle the sword of Damocles over our creditworthiness, they each rely on nearly identical metrics to do so,” says Robin Raskin on HuffPost.
With a purpose to create knowledge among SMEs and Financial institutions about the Credit Reporting for SME segment, the World Bank Group has developed two compelling and interactive online Learning Courses on this topic. These courses are intended to provide SMEs and lenders with the knowledge about MSME financing, credit information sharing, the role of credit information service providers, credit Reports, credit Score, and dispute resolution process.
From large banks to small ones, unique products are being developed to woo Small and Medium-sized Enterprises (SMEs). Though many banks are still uneasy to commit their money to SMEs, some progress is being made. With most banks having posted a drop in their net profits in six months to June 2017 and a dip interest income, they are cautiously beginning to warm up to a sector they had left at the mercy of Shylocks and microfinances.
