cat/credit-and-financial-information
JP Morgan recently announced a pilot project with OnDeck, one of the largest alternative lenders and one of the first, having started operations in 2007. This is only the most notable example of banks or credit unions entering “partnerships” with alternative lending companies (AFCs).
Small and medium-sized enterprises (SMEs) play a crucial role for employment, job creation, investment, innovation and economic growth around the world. They account for about 90% of businesses and more than 50% of employment worldwide, and are therefore crucial for the recovery of the world’s economy. Considering this important role, it is critical to ensure that viable SMEs around the world have access to the credit they need to expand.
The SME Finance Forum established the Risk Management Community of Practice (CoP) with the primary goal to foster the exchange of ideas, practical experiences, and new approaches to credit risk identification, monitoring and management, which can further improve the FIs’ operational effectiveness and efficiency, and benefit their SME clients.
The largest bank in the world, ICBC has never stopped its innovations. SME Finance Forum members had an opportunity to learn about the company during the Forum's second immersion program on June 10.
This whitepaper analyzes the information content of the digital footprint – information that people leave online simply by accessing or registering on a website – for predicting consumer default. Using more than 250,000 observations, we show that even simple, easily accessible variables from the digital footprint equal or exceed the information content of credit bureau scores. Furthermore, the discriminatory power for unscorable customers is very similar to that of scorable customers.
Access to finance is an essential component of economic development and job creation. A host of studies have shown a positive correlation between financial development and economic growth. Access to finance is also critical for larger corporations and conglomerates, which, given their size, performance, and assets, typically meet funding requirements through capital markets and other sources. Credit reporting systems are less relevant for these businesses, as lenders to these large entities rely on a variety of other sources of information when making credit-related decisions.
CGAP estimates that there is a $4.9 trillion credit gap for micro and small businesses in emerging markets. But digital technologies are disrupting traditional means of delivering MSE finance. CGAP talked to some of the most interesting companies about these new business models and breaks down the findings for you in their latest blog and deck. CGAP has undertaken a global landscaping study to estimate the opportunity size of credit to MSEs in emerging markets, outline how digital technologies are disrupting this space and describe the most promising new business models they see emerging.
Jessica Alfaro, a Financial Sector Specialist at the SME Finance Forum, was the introductory speaker on the Corporate and Commercial panel at the Accenture Fintech Forum “What is Really Working” on May 13. This event was part of the FinTechStage Festival 2019 taking place over five days in Milan, Italy. Alfaro was joined on the panel by speakers from Accenture Italy, Kyriba and October.
The Fundamentals of Credit Reporting Course will raise your understanding of the economic relevance, development impact and International Standards of Credit Reporting Systems. Through this course, the participants will also gain in key insights into the legal, institutional, operational and technical aspects of credit information solutions.
Washington, D.C. May 14, 2019 – Medical Credit Fund (MCF) became the newest member of the SME Finance Forum, a global membership network that brings together financial institutions, technology companies, and development finance institutions to share knowledge, spur innovation, and promote the growth of SMEs.
