This report provides a profile of institutional investors in Kenya and an assessment of their attitude and appetite for investment in early stage investment funds targeting small and medium sized enterprises (SMEs). The report was commissioned by GrowthFin, a programme of the Financial Sector Deepening (FSD) Trust that works with policy makers, donors, industry associations and […]
Fewer than 20 percent of small to medium sized enterprises (SMEs) in Kenya have ever received credit from formal financial institutions. Access is limited due to challenges in assessing SME risk in a costeffective manner. Lenders in Kenya address this risk-assessment problem either by not lending to SMEs at all or by requiring collateral and […]
This note discusses the working capital issues that SMEs face within their supply chains and how supply chain financing (SCF) products can help address them. While SCF presents commercial opportunities for a wide range of financial service providers, this technical note examines these opportunities as well as the issues that banking organisation’s experience operating in the […]
This technical note introduces the topic of credit scoring, discusses the different contexts in which such systems are used, the benefits of using these systems, and the challenges faced in developing and implementing them.
This technical note looks at the nature of cash flow based lending, how it meets particular funding needs of certain SMEs and the issues faced by financial institutions in providing this for of financial to smaller businesses.
This technical note discusses approaches and methods for market research on SME clients as well as how to plan and implement successful market research. Implementing SME market research can assist financial institutions to better understand the diverse group of SME clients and may help them serve the various types of clients better and develop appropriate […]
This note looks at the factors that determine the pricing and costing of financial products and services for SMEs and the particular issues and challenges faced in doing so for this client group, including the fact that SME relationship profitability often derives from the delivery of a bundle of products and services which are difficult […]
This technical note looks at the reasons for calculating profitability, the factors involved in doing so, and the common challenges faced in measuring and allocating profitability in the context of SME financial products and services.
This note looks at data mining on both individual SME accounts and on the SME portfolio as a whole, and suggests how and why extraction and review of data should be undertaken. At a time when banks are starting to offer SME banking services that are distinct from products offered to corporate and retail customers, […]