cat/credit-and-financial-information
The purpose of this Guide is to enhance transparency for potential fintech bank applicants and increase their understanding of the procedure and criteria applied by the ECB in its assessment of licence applications. This transparency is also intended to facilitate the application process. The Guide is technology-neutral and seeks neither to support nor to discourage the entrance of fintech banks as market participants.
SME Finance Forum member Development Bank of Nigeria is working to aid in providing finance to MSMEs. Calling it a "nightmare," its Managing Director/Chief Executive Officer, Tony Okpanachi, was appointed in 2017 with the mission to alleviate the financing constraints faced by MSMEs and small corporates in Nigeria. The Sun says his job remains to provide financing, partial credit guarantees and technical assistance to eligible financial intermediaries on a market-conforming and fully financially sustainable basis.
Small-scale entrepreneurs in Sub-Saharan Africa generally struggle to get loans because they lack the required collateral or credit history. Digital credit offers a potential solution to this problem, since the usage of a mobile money service generate data that can then be used to automatically assess the creditworthiness of the user. In Madagascar, IFC and the Mastercard Foundation partnered with microfinance bank Baobab to test the viability of digital loans.
In Kenya, SMEs are the mainstay of the economy and are expected to play a permanent role in realizing the Vision 2030, Kenya's evolvement group blueprint. Central Bank Governor Dr. Patrick Njoroge was the keynote speaker for the opening remarks at the Africa SME Finance Forum in Nairobi, which took place May 15-16.
The Irish SME Association (ISME) said the results of its Quarterly Bank Watch Survey show a decrease in refusal rates and a drop in demand for credit, while the waiting time from decision to drawdown remains unchanged at six weeks. The main findings from the 524 respondents in the second-last week of March found that 31 percent required additional or new bank facilities in the last three months, compared with 42 percent in the previous quarter.
Other findings include:
Since the 2012 launch of M-Shwari, a mobile banking service which offers a savings account and access to digital credit, the market for digital credit has expanded rapidly in Kenya. Digital credit is now offered by the three largest Kenyan banks (Kenya Commercial Bank, Equity Bank, and Cooperative Bank), as well as a growing number of FinTechs and non-bank institutions. Digital credit providers have developed different models to score and deliver credit to customers.
Join Paula Leynes Felipe, IFC Senior Risk Management Specialist for East Asia and Pacific, and the Global Co-Head of the SME Credit Risk Advisory Practice Group & Zhu Tao (Tony), CRO and VP of Lionbridge Leasing for a discussion on the risk practices of NBFIs and the key challenges to strengthen these practices. Lionbridge Leasing is one of the leading promoters of MSME financial leasing, and has served over 50,000 truck drivers and SMEs within 5 years in low tier cities and counties across China.
The Economic Times review of the Economic Survey 2017-18 says that the amount of credit or loans disbursed by banks amounted to Rs 26,041 billion as on November 2017, but 82.6% of this was pocketed by large enterprises. For millions of SMEs in the country, banks only lent out 17.4 % of the total credit. Learn more about the survey and how MSME climate in India as well as analysis of the report and the pitch for peer to peer lending as a solution for India's MSMEs.
The International Finance Corporation (IFC) hosted a discussion on the implications of the MSME finance gap for development institutions working on financial inclusion around the world.
It takes more than one organization to advance development. That’s why Multilateral Development Banks are joining forces to support and strengthen private sector investments in developing countries across the globe.
