Norfund’s Post

BPI Direct BanKo (BanKo) is the #microfinance arm of the Bank of the Philippine Islands (BPI) (BPI). BanKo was born out of BPI’s desire to address the needs of the #underserved and #unbanked market. Many #microenterprises lack access to finance because of strict requirements and affordable rates. These enterprises typically face challenges to provide documents like sales records, tax returns, and audited financial statements. A common option for these enterprises is to borrow from family members or informal lenders who frequently offers high interest rates. By offering loans to micro-entrepreneurs, BanKo can drive #business and #employment growth and reduce reliance on informal lending, contributing to the economic uplift for communities across the Philippines. In 2016, BanKo transitioned to focusing on providing capital for self-employed micro-entrepreneurs. When BanKo redesigned its business model and strategy, it transitioned to a face-to-face approach, with a community-based presence, fast approval process, and offering payment options to be convenient and flexible. Solicitation of accounts is done by loan associates with deep community knowledge, loan approvals are done in the branch and hybrid collection strategy with options for cash pick-up, automatic debit, or over the counter. With this approach, in the year 2022, BanKo disbursed loans to more than 149,000 micro businesses. By 2023, disbursements reached 213,375 loans. BanKo continues to expand its reach in serving the self-employed micro-entrepreneurs and the underserved market nationwide with more than 348 stores by end 2023. Download the full case study here: https://lnkd.in/g2xvgvf5

As someone operating in the fintech space, I see firsthand how these trends are impacting Aussie SMEs. ⚡Interest Rate Fluctuations⚡ The RBA's recent rate hikes are a double-edged sword. While they aim to curb inflation, they also increase borrowing costs, challenging the cash flow and investment capacities of our SMEs. It's crucial for businesses to reassess their financial strategies and explore alternative funding options. ⚡Economic Shifts⚡ Staying informed about inflation rates and GDP growth is essential. SMEs should focus on building cash reserves and leveraging flexible financing solutions to remain resilient during economic uncertainties. ⚡Market Trends⚡ The fintech revolution in Australia has been nothing short of transformative. Solutions like invoice financing and TP24's CreditLine are game-changers, offering faster, more flexible, and cost-effective financing options. These innovations are vital for SMEs looking to stay competitive. As we continue to witness these iterations in the financial space, it's imperative for SMEs to stay ahead of the curve by understanding these trends and adapting for the future. (S/o if you're curious about how to make these trends work for, not against, your business)

8 Billion SAR in Financing Provided to SMEs in 2023 by the Small and Medium Enterprises Bank 🔸️CEO of the Small and Medium Enterprises Bank SME Bank, told "Al-Eqtisadiah" that the financing provided to #SMEs through the "#Funding Portal" and its partners reached about 8 billion SAR ($2.13 billion) in 2023, through 25,000 #financing deals. Of this, 1 billion SAR ($266 million) was financed for about 850 establishments by the bank's private portfolio. 🔸️About the Small and Medium Enterprises Bank: ▪️The Small and Medium Enterprises Bank SME Bank, established in 2021, is a #SaudiGovernment bank aimed at supporting and developing the #SME sector in the #Kingdom. Since its inception, the bank has executed financing operations totaling 22 billion SAR ($5.87 billion) through more than 45,000 deals. ▪️ Financial and Banking Partners: The bank collaborates with various financial and banking partners, including commercial banks, financing companies, and investment funds, to provide financing solutions for SMEs. ▪️Supported Activities: The bank supports a wide range of activities, including innovation and technology, #tourism, #industry, and #logistics. #smallbusiness #entrepreneurship #businessgrowth #funding #financing #economicdevelopment #smes #finance #wealth #investment #realestate #business #money

6 Ways for SMEs to Beat the Credit Squeeze | The Fintech Times: As interest rates rise around Europe, SME Bank explains how SMEs can beat the credit squeeze and not succumb to economic pressures. #finpeform #fintech

Fantastic insights on the evolving SME financing landscape! The dynamic shifts in interest rates, economic conditions, and market trends truly highlight the need for SMEs and their trusted advisors to stay agile and informed. Embracing innovative solutions like fintech and TP24 Australia’s CreditLine can offer much-needed flexibility and resilience. Let’s keep pushing forward and ensure our SMEs are not just surviving but thriving in these changing times! #FinanceforSMEs #Fintech #BusinessGrowth #TP24

In today's tough economic climate, SMEs face the challenge of navigating through the credit squeeze resulting from increasing interest rates across Europe. Our CEO, Virginijus Doveika, offers pivotal strategies not only to endure these tough economic conditions but also to leverage them into opportunities. 🚀 By integrating financial tools for more effective cash flow management and exploring innovative funding options beyond traditional banking, he highlights critical approaches for SME resilience. Key tips include: 🟣 rigorous financial monitoring, 🟣 exploring a variety of funding sources, 🟣 enhancing negotiation skills. More insights on how to successfully navigate the credit squeeze on The Fintech Times below 👇 #SMEBank #smes #creditmanagement

6 Ways for SMEs to Beat the Credit Squeeze - great insights from SME Bank and The Fintech Times #fintech #SMEbanking #lending #economicdevelopment https://lnkd.in/ex3FzG5b

TBC Bank Uzbekistan Secures $10 Million Loan From responsAbility Investments AG Nika Kurdiani, CEO of TBC Group operations in Uzbekistan, commented: “This credit line from responsAbility is an important part of our strategy to broaden our funding base, and it will help us extend our support to more individuals and their micro enterprises, helping them grow and prosper. We remain committed to fostering financial inclusion and economic growth through innovative financial solutions as we continue to grow our lending volumes and products pipeline, helping expand the availability of accessible modern financial services across Uzbekistan.” https://lnkd.in/dSZxqZef #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Budget 2024: Industry Story by moneycontrol.com Tashwinder Singh, CEO & MD of Niyogin Fintech, said the MSME sector, alongside agriculture, plays a pivotal role, contributing about 30 percent to the country's GDP and offering gainful employment to 111 million individuals. There is a pressing need for the government to expand formal and affordable credit facilities through NBFCs. Read the detailed industry story for more insights! #insights #ceospeaks #expertinsights #financialinclusion #nbfc #msme #msmeindia

Optimism Returns for SMEs as Loan Applications Surge According to iwoca’s Q1 2024 SME Expert Index, optimism is on the rise among UK SMEs, with three in ten finance experts (28%) reporting loan requests over £100,000, marking a 56% increase from last year. This positive trend is supported by 70% of brokers who are optimistic about SME prospects in 2024, while only 8% are pessimistic. Additionally, nearly two-fifths (37%) of brokers have seen an increase in finance applications since last quarter. - 41% of loans are aimed at business growth. - 86% of brokers predict increasing demand for finance in the next six months. To support this growth, iwoca has secured £270 million in debt funding, including: - £150 million from Citibank and Insight Investment for expansion in Germany. - £120 million from Barclays and Värde Partners for UK operations. https://lnkd.in/eMHgJ959 #SME #BusinessGrowth #Finance