BY:
Resources for delivering enterprise finance
March 7th, 2016
FSD’s GrowthCap initiative produced resource guides around five interrelated aspects of developing SME finance. Each area is key to the successful development and delivery of SME centric financial services. The table below lists the resources currently available . Click on the titles in the resources developed column to download the documents.
Type key:
BN = Briefing note: discussion about the topic area TN = Technical note: an introduction to the topic area
RP = Research papers: findings from research into the topic TG = Technical guide: practical steps of how to do activity
| Area of Support | Resources developed | Type | Date | Summary |
|---|---|---|---|---|
| Overview of SME banking | ||||
| Transforming SME finance | BN | September 2014 | Examines why it is important for financial institutions to develop more SME centric financial services. | |
| Pursuing SME banking excellence | BN | December 2014 | The key challenges facing banks in developing SME centric finance. | |
| State of practice of SME banking | BN | September 2014 | Describes the emergence of SME banking as a separate line of business, and global SME banking best practice. | |
| Testing SME banking in Kenya – a mystery shopping exercise | RP | March 2016 | Presents the findings from a mystery shopping research study looking at the delivery of SME finance by banks in Kenya. | |
| Strategy and models | ||||
| SME banking models | TN | May 2015 | Reviews and compares SME banking model choices available to banks with commentary on how well they work and in what circumstances. | |
| Profitability analysis for SME financial services | TN | July 2015 | Examines the reasons for calculating profitability and the common challenges faced when doing this for SME financial products and services. | |
| Effective data mining & analysis for SME banking | TN | July 2015 | Discusses the importance of data mining in developing distinct SME finance and the key factors and challenges involved. | |
| SME strategic diagnostic framework | TN | June 2015 | A simple framework of key factors needed for developing an SME banking strategy within a financial institution. | |
| Banking – SME Codes of Conduct | TN | September 2014 | Introduces banking SME codes of conduct aimed at improving the relationship between financial institutions and their SME customers. | |
| Diagnostic checklist for SME benchmarking | TN | August 2015 | Provides a checklist of key questions used in an initial benchmarking review the SME financing practice of a bank’s current SME banking performance. | |
| Understanding the SME customer | ||||
| Understanding the SME customer | TN | December 2015 | Examines the nature of entrepreneurs and how they typically grow their businesses. Understanding these factors can help bankers better serve SMEs and their owners as customers. | |
| SME segmentation | TN | August 2015 | Describes the different ways the SME market may be segmented and shows the steps for making segmentation choices. | |
| A guide to implementing segmentation for SME banking | TG | August 2015 | A practical guide covering the key steps to implementing an SME segmentation strategy. | |
| Understanding how Kenyan entrepreneurs grow and finance their businesses | RP | June 2016 | A report on a qualitative research study examining the drivers of growth amongst Kenyan SMEs and how they were financed. It also provides recommendation from entrepreneurs on how financial institutions can deliver more effective solutions for them. | |
| Processes and systems | ||||
| Credit scoring for SME banking | TN | July 2015 | Introduces credit scoring, the different contexts in which such systems are used, the benefits of using these systems and the challenges faced in developing and implementing them. | |
| Getting started with credit scoring | TG | August 2015 | Step-by-step guidance on how banks with limited historical portfolio data can use simple analytical tools and methods to develop, test and improve their own credit scoring models for SMEs. | |
| Conducting a SME credit risk process review | TG | December 2015 | Outlines the key concepts and elements of good practice involved in undertaking a credit risk management process review. It focuses, in particular, on the issues faced in serving the credit needs of smaller business customers. | |
| Products and services | ||||
| SME product development | TN | March 2015 | Examines how to develop products for the SME segment that are unique from corporate and retail and more focused on the particular needs of growting enterprises. | |
| Pricing and costing of SME products and services | TN | July 2015 | Discusses the factors that determine the pricing and costing of financial products and services for SMEs. | |
| Market research for SME finance | TN | July 2015 | Outlines approaches and methods for undertaking market research on and with SME clients in order to identify their key financial needs. | |
| Tools for developing focus group discussions | TG | August 2015 | A practical guide on how to conduct effective focus groups with SMEs. | |
| Value proposition guide | TG | July 2015 | A five-step guide to help financial institutions define/review their offer to their SME clients. | |
| Supply chain financing for SMEs | TN | July 2015 | Discusses working capital issues that SMEs face and how supply chain finance products can help such businesses perform more effectively as key players within such supply chains. | |
| Cash flow based lending for SMEs | TN | July 2015 | Examines how cash flow based lending meets particular funding needs of certain SMEs and the challenges faced by banks in providing this form of finance to smaller businesses. | |
| Non-financial services in SME banking | TN | July 2016 | Discusses the benefits of banks providing non-financial services for their SME customers and the key factors that need to be considered to doing this effectively. | |
| SME focused people | ||||
| SME relationship banking approaches | TN | December 2016 | Discusses the need for banking staff to better understand the nature and needs of SMEs if they are to develop much stronger, mutually beneficial relationships and attract new growth business customers. | |
| Accrediting Small Business Bankers | TN | September 2014 | Discusses the importance of having competent relationship managers to transform SME banking and how to develop their competencies. | |
| Small business relationship management competencies | TN | July 2015 | Discusses the 12 core competencies required to be an effective small business relationship manager. | |
