This briefing note looks at the typical challenges that banks face in trying to establish long-term sustainable competitive advantage in what is an increasingly competitive SME market. It suggests a number of steps that banks need to consider in order to move towards this goal.
This briefing note describes the emergence of SME banking as a separate line of business, and informs on the distinctive characteristics of SME banking compared to corporate and retail banking. It also describes SME banking best practices in banks around the world, and in Kenya in particular.
Clearly, a symbiotic relationship exists between banks and SMEs. Banks need a strong and, hopefully, expanding pipeline of maturing SMEs to support growth in commercial lending and other financial services. At the same time, SMEs need access to financial services to underpin their entrepreneurial endeavours and fuel their growth ambitions. The nature of the relationship […]