Articles

Is Technology Enough to Plug the SME Financing Gap?

Technology is revolutionising trade finance while facilitating lending to small businesses by tech giants such as PayPal, Amazon and Alibaba. But is this enough to fill the $1500bn global trade finance gap? Stefania Palma from The Banker investigates.

Articles

Articles

Jim Yong Kim: Women-Owned Startups Could End Poverty
World Bank Group president Jim Yong Kim says one of the quickest ways to end poverty is increasing the ranks of female entrepreneurs. He tells Inc. magazine that U.S. should pay attention to the breakthroughs happening in the developing world. From his article, he says that Incubators and accelerators in Pakistan, Nigeria, and the Middle East are...
Establishing Stock Exchanges for SME Financing
In this article, Moazzam Ali Tarar explores the financing options available for SMEs, primarily in small cities. Tarar believes a stock exchange is worth pursuing, stating "In the last decade, various innovative financial tools have been developed globally to address business challenges of micro-enterprises, innovators and entrepreneurs. The...
Beyond Microcredit: Why Tackling Poverty Requires More Than a Loan
Microfinance is a $92 billion industry , with more than 100 million borrowers in more than 75 countries around the world. But as regular readers of NextBillion know, it is no silver bullet to poverty, and previously held assumptions that extending microloans to impoverished people is a sure path out of poverty have been challenged. Microcredit...
Banking on a New Competitive Environment – Marketplace Banking
Various studies have found that banks have neglected the needs of small businesses when it comes to delivering digital services for reasons including the impact of complex ownership structures on customer onboarding and difficulties establishing creditworthiness of early stage businesses, says eter-Jan Van de Venn , CCO of Five Degrees...
Digital Innovations in Smallholder Agricultural Insurance
Index-based agricultural insurance emerged as a potential solution to the logistical challenges that have limited smallholders’ access to insurance, according to CGAP. This type of insurance calculates payouts using an index figure that is highly correlated with loss caused by an insured risk, such as a drought, flood or pests. However, the...
P2P Lending is Now a Regulated Activity in India
And they're out! P2P lending is now a regulated activity in India. https://lnkd.in/fUGDuet 1) The guidelines clarify that P2P is restricted to activities between individuals, providing relief to hybrid models who also work with banks and NBFCs,. However, credit enhancements are prohibited, and while this is sensible for individuals, clarity is...
Credit Bureaus: Our Data Is Their Product
The recent Equifax data breach left many of us thinking about larger issues. “What value do the three big ratings bureaus, Equifax, Experian and TransUnion, provide today in our emerging digital economy? Not only do these agencies dangle the sword of Damocles over our creditworthiness, they each rely on nearly identical metrics to do so,” says...
Africa Promotes Women Entrepreneurs Better Than Silicon Valley
In this article, Entreprenuer reports that despite the tech industry’s progressive reputation, its track record for hiring, promoting and funding women is bleak: Only 17 percent of American startups have female founders. However, halfway across the globe in tech hubs like Lagos, Nigeria, and Nairobi, Kenya, 46 percent of African ventures have a...
The Risk Of Playing Alt Lending’s Rate Limbo
PYMNTS.com interviews Quick.me CEO Ola Okeshola on how the access to capital for small businesses has dried up significantly since the Great Recession. While the challenge is easy to pinpoint, the solutions are harder to find, as FinTechs serving SMBs aren’t just looking to answer a series of questions that the market is still learning how to ask...
Is Technology Enough to Plug the SME Financing Gap?
Technology is revolutionising trade finance while facilitating lending to small businesses by tech giants such as PayPal, Amazon and Alibaba. But is this enough to fill the $1500bn global trade finance gap? Stefania Palma from The Banker investigates.