Articles

Effective Risk Assessment Models and Alternative Data Proves Beneficial for Retail Lenders

Effective risk assessment is instrumental in the lending business. According to Medici, technology companies are creating risk assessment models with increasingly inclusive variables that are allowing lenders to reach the previously unbankable population.

Articles

Articles

BSTDB Provides US $15 Million Loan to Support  Armenian SMEs
The Black Sea Trade and Development Bank will support the financing of SMEs in Armenia through a US $15 million loan to Ardshinbank. The loan will benefit 100 SMEs and impact 3,600 jobs in Armenia, according to the article. SMEs in Armenia are a key driver and contributor to the country’s GDP, generating up to 40 percent of GDP. “As a development...
Approach to Enterprise Support is Failing Africa’s SMEs
Despite providing immense financial support for the economy, SMEs still face a multitude of challenges and lack support. According to the article, 72 percent of all startup funding went into only three companies in the region (Africa) in the span of two recent years. Supply and demand are the causes inhibiting SMEs’ access to support. On the...
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. The informal...
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...
The Cost of Being Poor: Is Fintech the Answer?
In the UK 1.5 billion adults are “unbanked” according to Ronnie Lavie, Managing Editor for the Fintech Times. A vicious cycle, of financial exclusion has interrupted lower-income populations from enjoying the benefits from the fintech industry. Sofie Blakstad, Founder and CEO of financial trust platform ‘Hiveonline’ shared, “Wealth disparity is...
Will the Promotion of Arab Women as Entrepreneurs Make a Difference?
One in three start-ups in the Arab World is led by women—a higher rate than in Silicon Valley, according to an IFC article. Improving access to finance and promoting digital platforms are key to helping them succeed. The article says that many entrepreneurs from the region believe that technology is one of the few spaces where everything is viewed...
Central Bank of Nigeria Emphasizes Increase for Credit Culture for SMEs
During a workshop for SMEs, hosted by the Bankers’ Committee, Central Bank of Nigeria’s (CBN) Senior Manager for the Development Finance Department, Chinedu Zephaniah shared that poor business habits and fragile financial systems have made it complicated to support SMEs. “At the moment, we have disbursed N170 billion to support SMEs but the...
Member News: Industry Partner GBA for Women Features Diamond Bank's Digital Innovation
Industry Partner GBA for Women says that digital solutions for product distribution are rapidly increasing banks’ ability to reach the unbanked – a segment disproportionately made up of women. During the recent All-Stars Academy in South Africa, GBA heard from two of its members who are making huge strides in this area: Diamond Bank of Nigeria -...
Democratization of Startup Financing
In the U.S. financial services market, regulations such as Reg A+ and Reg CF have opened up new avenues for startups to raise financing from a large number of unaccredited investors along with accredited investors. Among the 636 companies that filed forms to conduct new offerings under Reg A+ or Reg CF, 80% of them (514) filed for Reg CF. In...
Financial Inclusion for SMEs is at the Core of the Economy's Potential
Financial inclusions is one of the largest challenges SMEs face today. In part two of Dhaka Tribune’s “At the Core of Our Potential” series, banker, Tarique Afzal sheds light on why this area is restricted for SMEs. · Banks are more focused on urban-based lending · Banks are at times reluctant to delegate to rural branch levels · Lack of interest...