- 4.7 Instructor Rating
- 9 Courses
1.1. Defining a small business is different around the world
1.2. Some of the best small business finance models from around the world
1.3. The A-Z of how small businesses are financed
2.1. Credit process: commercial loans vs consumer/SME loans
2.2. Dealing with SME ‘financials’ (or the absence of financials)
2.3. Why are accounting policies important?
2.4. Making your borrowers more effective
3.1. Finance vs banking
3.2. Debt vs equity
3.3. Financial intermediation
3.4. Why do SMEs borrow and why should an FI lend to SMEs?
4.1. What needs to change at SMEs?
4.2. Identifying key products and services suitable to your target market
4.3. Lending on receivables and inventory
4.4. Lend the product that suits the borrower’s need, not necessarily what the borrower asks for
5.1. Going slowly into a banking relationship, not quickly into a banking transaction
5.2. Mechanics of booking and reviewing SME transactions
5.3. Understanding 5C’s of Credit
5.4. A layman’s approach to terms and conditions
6.1. Early identification of potential small business default:
6.2. Financial vs non-financial warning signals
6.3. Strategies available to manage small business default
6.4. Breaking down debt into negotiable elements
7.1. Why are good environmental practices relevant to finance?
7.2. Potential impact on profits and cash flows?
7.3. Potential impact on collateral, borrowers and lenders?
7.4. Climate change and finance?
8.1. Products which your financial institution can offer to its SME clients?
8.2. Non-bank services including cash processing, wages, pension fund management, forex management and export related support
9.1. Building strong customer relationships and sustainable operating profits
9.2. Top-down credit analysis to manage change
9.3. What can change the sustainability of your borrower’s operations?
9.4. Possible ways to deal with black swan events
10.1. How is your institution organised around small business finance?
10.2. Key SME functions each FI needs to have:
Small businesses are the veins and arteries of the economy. Millions of imaginative, hardworking and self-motivated individuals respond creatively to the demands of the economy in the respective countries we come from.
The financial services industry’s ability to serve the small business world is crucial in ensuring the continued success for any economy. But serving the community requires considerable and specific skills, as well as an instinct for this business. It also requires an understanding of how technology and innovation can be used to succeed in this fierce competition for the business of the small customer.
Where banks are failing small businesses today, new forms of financing support are coming in to take the place of traditional players. More important than selling credit, banks have to learn how to sell a sense of community and mutual support.
This training is designed to be carried out digitally for the benefit of your promising employees in this business.
Expert in SME Banking, Credit and Risk Management Advisor, Excellence in Retail Financial Services Awards Programme, The Asian Banker
Andrew McRobert is a credit and risk management specialist in development, commercial and SME banking. He currently runs a training and consulting firm in SME and small business banking. He started his banking career in Citicorp and has also held various positions in commercial banking. Andrew had also worked in corporate finance at Price Waterhouse in Jakarta, Indonesia and has undertaken credit, problem loans and risk management assignments for the Asian Development Bank, IFC, African Development Bank and others. He has designed, written and presented financial markets seminars in nearly 30 countries in the Asia-Pacific, Middle East and African markets.
Banks have not experienced a significant deterioration in asset quality of their MSME exposure, supported by various policy measures.
China has the largest green loan balance in the world, estimates place its green loan balance at $3.3 trillion by end of 2022
Some countries in Asia Pacific posted stronger growth in bank lending to small businesses between 2019 and 2021 as compared to the period from 2017 to 2019
Dennis Khoo, author and former UOB TMRW head, in this wide-ranging interview discussed the lessons from setting up one of the first digital banks in Southeast Asia, the imperative for incumbents to start a digital-only bank experiment and offers a road-map to it.
Licensed digital banks and P2P/marketplace platforms focused on alternative business lending to SMEs are overcoming operating and market challenges to scale and sustain their businesses. Leading players are charging ahead with more comprehensive service solutions and expanding regionally.
The rapid digitalisation of MSMEs, emergence of new digital-native business models and niche segments have become a key focus area for financial technology
Digital and incumbent banks face growing threats from big tech and payment platforms that are evolving into full-scale financial services players. Latest forecast derived from BIS data, predicts that alternative financing will surpass $1 trillion by 2023.
Better returns in the alternative finance sector and an increase in transparency attracts more non-institutional investments particularly in online platform lending
While fintechs may take some market share away in specific niches, the partnerships, analytics, and value-add that leading banks are developing can keep head of the game. Banks that fail to keep up could lose a significant share of their SME business