Articles

Closing Africa’s MSME Finance Gap

Africa's Times of News, provided insights to the IFC estimation that Africa’s finance gap for small and medium enterprises (SMEs) stands at $331bn. Micro, small and medium enterprises (MSMEs) form the backbone of most African economies and investment in this sector will significantly enhance job creation and wealth development.

Articles

Articles

MEB Will Lend K250 Billion to Local SMEs
Myanma Economic Bank (MEB) will provide funds to SMEs in the the manufacturing, production and trading, import substitution, recycling and energy saving and services sectors. MEB has a two-step loan with an interest rate of nine percent, a part of their SME loan program. Borrowers able to utilize property as collateral will be able to access K300...
Digitization Could Hurt Relationship Between Banks and Venture Clients, Specifically Women
Approved bank loans to SMEs has decreased by 15 percent over the last 10 years, and roughly 60 percent of all ventures in need of external financing have reported difficulties in accessing financing for their investments, according to an article by the Harvard Business Review. Digitization is proving to have a negative effect on entrepreneurs,...
 IFC and Other Key Stakeholders Advise Government in Philippines on New Law to Support MSMEs
The IFC in partnership with the Department of Finance, the Land Registration Authority, Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, the Department of Trade and Industry, various MSMEs and banking associations to construct a new bill to support MSMEs in the Philippines. The Personal Property Security Act (Republic Act No...
Medici Outlines the Challenges in the SME Lending Requirements
SMEs are still struggling to curate working capital. Medici examines the glitches in SME lending, automation of onboarding customers and loan origination and how banks can make real change in SME lending. Reported errors in the SME lending: Most of the time, banks refuse to lend money to those whose revenue is less than $2 million. Banks view SME...
SMEs Receive €475 Million in Loan Support from the European Union
The head of the EU delegation to Egypt, Ambassador Ivan Surkoš reported the European Union (EU), with support from European financial institutions will provide €475 million in loans to support SMEs. EU launched the ‘EU Facility for Inclusive Growth and Job Creation,’ which aims to provide an environment of business creation and economic...
How India’s Small Finance Banks Aim to Take Financial Inclusion to the Next Level
India has lended to hundreds throughout the unbanked community and is the largest microfinance market in the world, according to Next Billion. Microfinance in India has its pros and cons. It’s able to reach customers that mainstream financial institutions fail to notice, but it also lacks adequate regulation, making it dangerous for borrowers. The...
Alternative Lenders Bridge Gaps, Cater to Untapped Markets & Offer Great CX
Alternative lending is looking more attractive to SMEs working to find affordable funding solutions for their business. According to Medici, alternative lending is focused on commerce and not credit. For example, “PayPal offers working capital loans to small businesses that transact more than $20,000 within 12 months.” According to a report by...
Interview with Kelvin Teo & Reynold Wijaya Co-Founders of Funding Societies | Modalku, a Company Supporting SMEs
Kelvin Teo, Top 200 FinTech Influencers in Asia recipient, and Reynold Wijaya, Forbes 30 under 30 recipient are both Harvard Business School graduates and co-founders for the company Funding Societies | Modalku. Funding Societies | Modalku is Southeast Asia’s largest peer-to-peer financing platform geared towards supporting SMEs grow their...
Solving the SME AML De-Risking Burden Using the Blockchain
SMEs that must be de-risked are experiencing issues with access to finance, however blockchain may be the answer to their problem. Dubai-Based Global Anti-Money Laundering, Risk, Governance and Compliance Professional, Maureen M., explores the benefits of blockchain and their ability to transform how SMEs are perceived by financial institutions (...
Women Entrepreneurs in Vietnam Get a Fair Shot with Financing
Commercial Joint Stock Bank (VP Bank) invested in Ho Thi Hai Ngan, a woman entrepreneur looking to expand her electronics shop. With capital as one of the larger challenges faced by SMEs, women are challenged at a much larger rate when “lender biases,” according to the article, are being added to the picture. VP Bank decided to be the change and...