Articles

Fintechs and Banks: An Unequal Partnership

Years ago I consulted with the legacy Wachovia Bank, headquartered in Winston Salem. Back then the bank-teamed credit and line bankers on each commercial loan, terming their working relationship an “equal partnership.” In fact, when you spoke with management offline, many admitted that the credit people were a bit more equal than line personnel.

Articles

Articles

Banks and their partners need to face up a set of realities to manage successfully
Sometimes it is valuable to rethink basic assumptions and hopes to consider the reality of working within a bank or credit union. Example: Small Business. The small business segment offers exceptional economic value to banks. We work with one small business-focused bank whose customers provide deposits that exceed loans by 5X. That allows the bank...
External financing - should SMEs take the leap?
The UK’s rapidly expanding small business sector is something of a sleeping giant, with young companies in need of better access to finance to kick-start their growth. Early-stage start-ups are reasonably well catered for in the funding stakes, but as they reach the development capital stage – with a viable, revenue- generating concept and a clear...
Small business, big attraction: Can small business banking be personal?
Small businesses have long mystified banks. They make up an overwhelming 99 percent of all businesses—yes, 99 percent—and employ close to half of all workers. They generate more than 60 percent of the private sector’s net new jobs. Yet despite the critical role small businesses play in the economy, most banks struggle to generate strong returns...
The Deserving Under-Served – Shifting the Focus for Banks
The world of banking has remained unchanged for decades; when all about them were innovating and disrupting their sectors various, the bank did nothing, managing to continue its unilateral conversation to its one customer. The middle-aged man. The banking sector has done itself no favors by eliminating the woman from their branding strategy; this...
SMEs Access to Capital Markets in India
It took almost a decade since the SME Exchange has been formalised to see 60 floats in a month. Still the total number of listings on the SME bourses is not something that the growing Indian economy can be proud of. In India, most SMEs operate in debt markets. Cost of raising debt for SMEs is increasingly becoming problematic both from the points...
Access to finance, a challenge for SMEs in Fiji
This week the Fiji Export Council (FEC) sheds light on a major challenge faced by small medium enterprises (SMEs), which is access to finance. After reviewing workshops and seminars conducted by the FEC over recent years on export readiness, one of the biggest challenges for development raised by SMEs in Fiji is the availability of finance...
Managing Risk in Small Business Lending
Data science technology has dramatically improved access to financing and the way we manage our money. The fintech wave that began with my former company, PayPal, and the world of payments, has spread to other aspects of personal finance, from mortgages to student and auto loans to investing. This expansion was accompanied by growing concern that...
Financial Inclusion: Is SME lending the Goldilocks of digital banking?
Can digital plug the SME credit funding gap and support financial inclusion? Lack of financing for small business has vexed policy makers around the globe for years but, by working together, banks, governments and technology companies have it within their power to solve the problem today. More than 200 million small and medium enterprises (SMEs)...
The Distributed Economy: Four Ways Blockchain Can Transform MSMEs in Emerging Markets
Together, micro, small and medium enterprises (MSMEs) are the largest employers in many developing countries, yet their viability suffers from limited access to savings, insurance, credit equity and payments services. According to the International Finance Corporation’s Enterprise Finance Gap Database, there are 400 million MSMEs in developing...
Brazil, a Hard Nut to Crack for Digital Banks?
Brazil, the Latin American superpower and force to be reckoned with. The Portuguese-speaking titan in the midst of a sea of Spanish speakers, and that’s just the tip of the iceberg. A vast expanse of country with some 204 million inhabitants, Brazil is fundamentally self-sufficient and can afford not to look too far beyond its borders for...