Small and Medium Businesses/Enterprises (SMBs/SMEs) form the backbone of the global economy. They account for over 90% of all businesses worldwide and contribute significantly to both global GDP as well as employment.
SMEs will continue to play a critical role in the economic growth and development of every country, and yet they are often constrained by access to funds. This situation is the result of two factors. On the one hand, banks are unwilling to lend to SMEs because they are associated with higher credit risk and higher costs of service delivery (compared to larger corporate borrowers). On the other hand, most SMEs are not always prepared to fulfil the cumbersome requirements of obtaining bank loans.
While most non-banking players are already underway in tapping into this opportunity, this will be a lucrative area of focus for banks too, considering the increasing pressure they’re facing with revenue and profit margins from their traditional line of businesses.
In this whitepaper, discover:
- Why it is imperative for banks to reinvent their propositions for SMEs
- How new players are targeting this segment
- 3 imperatives that banks must address to win in the emerging SME segment
