Articles

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.

There is a shortage of credit data on MSME borrowers — also referred to as ‘thin file’ borrowers, since MSMEs lack access to traditional credit facilities through banks and other traditional lenders. The authors in this World Bank Group blog say that this information asymmetry has paved the way for identifying new ways to assess the creditworthiness of MSME and other thin-file borrowers—including the use of alternative data in credit reporting.

The journey from unbundling to rebundling and back has been a formidable one. Emerging technologies and the pace of innovation are driving changes throughout the banking industry at an unprecedented rate. From Asia to Europe, U.S. to Africa, and Australia to the Middle East, consumers are not only increasingly adopting digital – most are demanding it. While the movement toward our ability to bank anywhere is inevitable, the path towards transformation varies from one region to the next – and very different models have evolved within each geography.

The Fiji Development Bank (FDB) and the Ministry of Agriculture signed a memorandum of understanding (MOU) on a matching grant scheme to support SMEs focused on agriculture. 

According to the article, SMEs can receive access to grant finance of up to $50,000 and loan funding of up to $100,000. Areas that are included to benefit from this scheme are: Ba, Nadroga, Navosa and Naitasiri provinces. 

This agreement is set to improve market-oriented production and open the doors for SMEs to access remote farming areas. 

Interview with Terrence Teoh, SME banking head at Hong Leong Bank, recently named the best SME bank in Malaysia by The Asian Banker. “For SMEs to expand, it is not only funding that is important,” said Terrence Teoh, the head of group SME banking at Hong Leong Bank Bhd (HLB). “Of course funding matters, but on top of that, how you collect your money and manage cash is equally important."

Member OPIC continues to make an impact in closing the SME finance Gap where it's needed most. In this letter to the editor for Myanmar Times, Scot Marciel, U.S. ambassador to Myanmar speaks on how OPIC continues to invest in Myanmar. Marciel says, "Two years ago OPIC committed financing to its first microfinance project in Myanmar, to help entrepreneurs and small business owners obtain loans to start and grow businesses. Despite Myanmar’s strong recent growth, the portion of adults who have access to financial services remains among the lowest in the region.

Radoslav Albrecht is the Founder and CEO of Bitbond, a global lending platform for small business loans. The SME Finance Forum member, leverages blockchain technology to connect creditworthy borrowers with individual and institutional investors. Recently, Anthony Manfre interviewed Radoslav to learn more about how Bitbond is leading innovation in the lending industry.

IFC’s latest study shows that a more diverse panel of asset managers may be the key to bigger profits. Henriette Kolb, Head of IFC’s Gender Secretariat, said an ideal mix of at least 30 percent of women in an investment team can lead to substantially bigger yields for the company. BusinessWorld reports.

With more than $3 trillion in assets under management—nearly $800 billion of which is allocated to emerging markets—private equity can be a powerful source of financing, especially for innovative businesses that cannot access bank loans or capital markets. Investors and funds with stakes in these privately owned companies not only help them expand, they also contribute to generating jobs, tax revenues, and better services.

Tracey Davies, President of Money20/20, and founder of the Rise Up initiative, outlines the five ways the program empowers women at work as the initiative comes to Singapore.
 
I have always been a hopeful optimist about the trajectory of women, but as the number of women reaching the top just hasn’t made the progress I expected, I have become much less accepting of the status quo. How can it be that we still aren’t seeing faster progress for women across the world and in every industry?