Digitization of SME Finance Is a Win-Win for All

Globally, access to finance remains one of the most significant constraints to the growth, productivity and even survival of SMEs – and to the critical jobs they create. The SME credit gap is both a demand and supply side problem. On the demand side, many SMEs cannot get access to credit because bankers cannot see the critical information they require to assess creditworthiness. To most bankers, this means they lack financial documentation, business plans, collateral, etc. On the supply side, banks thus consider SMEs as high-risk and unsuitable to serve at interest rates they’re able to charge. For these two reasons, banks often prefer to lend to larger firms. Limited SME conventional documentation ...

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