Articles

Eric Duflos, Director of the Office of the UNSGSA, wrote a blog titled "Doing Business While Doing Good: CEOs Partner to Boost Inclusion." Last month in Davos, at the invitation of Queen Máxima of the Netherlands, the UN Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA), the leaders of ten leading global companies gathered to share early results from a novel initiative aimed at increasing financial inclusion while improving bottom lines.

“It’s one thing to offer universal healthcare to your citizens. But the next question is ‘okay, where can I go,’” said Bart Schaap, Chief Financial Officer at Medical Credit Fund (MCF). The region suffers from a dearth of healthcare facilities, especially ones that provide quality care. For Schaap, the solution is obvious: “If you want to address the great need in Africa for increased capacity—for doctors, beds, facilities—and greater quality in healthcare, you need to provide businesses with funding opportunities and operational advice. You need to look at the supply side.”

An IFC team worked with World Bank colleagues to create a new market for leasing in Haiti and address the problems SMEs have accessing finance. The project exemplifies the Maximizing Finance for Development (MFD) approach: a private-sector solution made possible by public-sector interventions. Team members relied on lessons learned from previous IFC leasing projects around the globe. Now their own innovative project will be replicated in other countries.
 

McKinsey reached out to the CEOs of three innovative fintechs—Ping Identity, Plaid, and Tink—for their perspectives on global prospects for open banking. While these firms address varying perceived pain points in financial services and pursue different business models, common themes emerged across the three interviews. The implications for banks and other traditional financial services firms are far reaching, and warrant thorough strategic analysis.

While alternative dispute resolution has exploded in popularity for larger businesses, it hasn’t found its way to the MSME community. As a friend in the arbitration business said recently, “micro businesses couldn’t afford the coffee at most arbitration centers.” But the emerging field of online dispute resolution, or ODR, promises to change the landscape. Technology and a little creative legal thinking can reduce the cost of dispute resolution from $1,000 an hour to $1,000 a case. Or even $100 a case. ODR, accordingly, has tremendous potential to spur growth in developing countries.

Qatar the upcoming “free economic zone,” according to the article will attract business in a monumental way. 

HSBC, a long standing bank in Qatar is excited about the upcoming advantages that will be presented with this opportunity. 

A new labor policy in Australia will provide SMEs free legal advice to resolve tax related issues. 

According to the article, Labor will provide four million dollars over four years to create 10 tax clinics across the country. The policy will provide assistance and advice to vulnerable taxpayers and SMEs.

Through the European Bank for Reconstruction and Development’s Western Balkans SME Competitiveness Support Programme the Sparkasse Banka Makedonija will receive a €10 million loan to boost lending for SMEs. 

According to the article, the loan is aimed at improving the competitiveness of local companies, with at least 60 percent of the funds aimed at reducing energy and resource use and associated costs.

SMEs significantly impact the Macedonian economy, providing 80 percent of all jobs in the country, however they still face access to finance related challenges. 

According to a report by report from the Hồ Chí Minh Securities Company, interest rates have risen by 0.46 percent for short-term loans, they are now 7 to 9 percent and for medium and long-term loans 9 to 12.5 percent. 

According to the article, this increase is being used in the hopes of reducing money supply to tackle inflation. A strict monetary policy will be adopted that will cause banks restrict banks from increasing their credit growth, therefore increasing their lending interest rates.