Building a Scaleable and Profitable SME Banking Business
Publication Date: June 2009
Category: SME Banking

Total No. of Figures/Tables: 35
Publication Price: US$ 2500

INTRODUCTION

Despite the role of SMEs as an important growth engine in the Asia-Pacifi c¡¯s economy, the SME segment has traditionally been perceived as riskier, more labour intensive and less profi table to bank than large corporations. This situation is however changing rapidly as banks zero in on SMEs as a major source of growth to augment declining profi tability in some of the consumer and wholesale banking businesses. Leading banks are also adopting the approach of enhancing profi tability of each client through cross selling and a greater reliance on fi nancial information and communications technologies to reduce transaction costs and risk.

This report is part of the Consumer Banking Competitive Benchmarking Series and presents The Asian Banker¡¯s composite view on the key elements and drivers that shape the SME banking business.


  1. This report captures important benchmarks players need to be aware of in running the business.
  2. It provides key operational insights into macro, market and street level fundamentals from which banks are able to build their own benchmarking templates and capabilities.
  3. It identifi es operational best practices among commercial banks building their wealth management business.
  4. It also identifi es emerging strategies in building a customer-centric business architecture, multichannel sales capabilities, and a scalable advisory model.
  5. The report captures important benchmarks players need to be aware of in running the business.
  6. It provides key operational insights into macro, market and street level fundamentals from which banks are able to build their own benchmarking templates and capabilities.
  7. It identifi es emerging strategies in customer relations and retention among commercial banks growing their SME banking business.
  8. It also identifi es best practices in credit risk management, product design, channels and distribution for this business.

  1. Understand the critical success factors for running a profi table and scaleable SME banking business.
  2. Understand the key strategic performance indicators required for a Balanced Scorecard evaluation of the business.
  3. Learn to recognise the important industry signposts that shape the competitive landscape as well as the red fl ags that require attention in the course of running your SME banking business.

  1. Heads of SME banking, consumer banking, credit risk management, channels, strategic planning, marketing and human resources.
  2. Research analysts in banks and non-banking fi nancial institutions.
  3. Director of sales, relationship managers, product and service developers and other sales personnel with responsibility for SME banking products and services.
  4. Vendors and service providers targeting the fi nancial services.

1. Macro Level Fundamentals
  1. Fundamental beliefs that determine the shape of SME banking
  2. Industry drivers that determine the competitive landscape
  3. Sign posts and red fl ags
  4. Industry Scenarios
  5. Key macro indicators
  6. The 4 distinct evolutionary stages of SME banking
  7. Shifts in customer preference across product and service types
  8. Diversifi cation of customer segments and corridors
2. Market Level Fundamentals
  1. Strategic performance indicators
  2. International variations in SME classifi cation
  3. Industry defi nitions of what constitutes a SME banking business
  4. Tracking the variations in strategies across market types
  5. Developing a sustainable product proposition
3. Street Level Fundamentals
  1. Balanced scorecard Indicators to track business performance
  2. Key elements defi ning success in the SME banking business
  3. The business architecture of a benchmark SME banking business
  4. The model for successful customer segmentation
  5. Building a robust credit risk management system
  6. Designing products and services for SME customers
  7. Our Scorecard for assessing players in this business
  8. The "Banks We Like"
  9. The Questions We Ask