cat/credit-and-financial-information
This note analyzes the evolution of CISs, including the emergence of new technologies that use alternative data in credit decisioning and the opportunities and risks associated with these trends. This paper also predicts the potential development effect of these disruptive technologies and proposes a role for the World Bank Group in leveraging these technologies to promote inclusion and stability.
Washington, D.C. May 7, 2019 – Banco Amazonas 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.
“200 million businesses worldwide need financing to invest, grow and create new jobs. We are proud to have Banco Amazonas join our network of 150 members who work to expand access to finance for small and medium businesses,” said Matthew Gamser, CEO of the Forum.
Household debt is at an all-time high, delinquencies have been rising, and forward-looking macroeconomic indicators are softening. As a result, lenders are reexamining their capacities for handling delinquencies. Part of that reevaluation for heads of collections involves taking into account changes in the consumer landscape. For example, consumers increasingly communicate with financial-services providers through text messaging and prefer self-service digital channels.
Enterprise development is a key development policy priority across SSA national agendas. Small and medium enterprise development is typically considered a key driver of economic growth, employment, and innovation. However, insurance support for these enterprises is currently limited – although several SME-focused insurance products were identified in Ghana, Nigeria, Kenya and Rwanda, most available products are characteristic of scaled-down large corporate products that do not necessarily account for the nuanced needs of SMEs.
As part of its strategy to expand across the African continent, 4G Capital is delighted to announce the opening of offices in Kampala and launch of award winning financial services designed to empower micro and small enterprises (MSMEs) across Uganda.
4G Capital has supported the sustainable growth of MSMEs in Kenya since 2013 by providing important financial literacy training blended with unsecured working capital credit.
The Small Business Credit Survey (SBCS), a national collaboration of the 12 Federal Reserve Banks, delivers timely information on small business financing needs, decisions, and outcomes to policymakers, lenders, and service providers. The report findings provide an in-depth look at small business performance, debt holdings, and credit experiences, complementing national data on lending volume and lender perceptions.
Overall, the survey finds:
The Small Business Lending Survey is a nationally-representative survey of U.S. banks and their small business lending practices. The report of survey findings offers new information for both small and large banks on many aspects of their small business lending. The results provide context for the implications of current bank consolidation trends on U.S. small businesses. Approximately 1,200 banks—about one-fifth of the FDIC-insured institutions in the United States—responded to the survey.
The report provides a comprehensive review on the development of the so-called Micro and Small Finance (MSF) market in China, meaning credit services to Small and Micro Enterprises (MSEs), unincorporated but registered urban businesses and MSE owners.
Since 2014, in order to better serve low-income women in Sub-Saharan Africa with financial products, Women’s World Banking and Financial Sector Deepening Africa (FSDA), an initiative funded by the U.K.’s Department for International Development (DFID), have partnered to build the capacity of leading financial institutions in Nigeria, Tanzania and Malawi. Lessons learned from youth and adult savings, digital credit, credit for MSMEs, and institutional capacity building are featured in the digital anthology.
Globally, two billion people remain unbanked and women lag behind men in terms of access to formal accounts, credit and savings products. 80% of women-owned SMEs have unmet credit needs, resulting in a credit gap of up to $320 billion. Closing the gender gap in financial inclusion could help reduce poverty and foster economic growth worldwide.
