During the Global SME Finance Forum 2018, Sharmila Hardi, Senior Manager, IFC explains that banks have always perceived SMEs to be quite risky to lend because SMEs usually don’t have track records, the loans they request are rather small and regulators require high risk-weighted assets for SME lending.
“But while banks have exited from lending to SMEs, other key players, particularly fintechs and e-commerce platforms have been stepping in,” Hardi shared.
In the interview, she explored issues aside from finance as a hurdle for SMEs.
“We need to create an ecosystem for SMEs. [They] need capacity, capital [and] community,” she said. “We are trying to help them both with financial services but also non-financial services... so that they can grow, thrive and succeed in creating more employment.”
More than 600 attendees represented 208 institutions and 80 countries at the Forum. See event highlights, testimonials, other expert interviews, 13 TechPitches, session presentations and a recap of the Study Tour to 12 innovative financial institutions on the event website: https://globalsmefinanceforum.org/2018