Why Banks in Emerging Markets Are Increasingly Providing Non-financial Services to Small and Medium Enterprises

Banks in emerging markets are increasingly providing non-financial services to their SME clients, typically consisting of information sharing, training and consultancy. This study, published by IFC in partnership with the Austrian Government, is the first to explore reasons behind this trend, finding that banks' key motivations include attracting and retaining customers, and strengthening portfolio quality. The report consists of an overview followed by case studies of three banks, namely Türk Ekonomi Bankasý (TEB), Standard Chartered Bank (SCB), and ICICI Bank. It is estimated that there are 365 to 445 million formal and informal micro, small, and medium enterprises, with a subset of 25 to 35 million formal SMEs, in the developing world. Of these, 70 percent do not use external financing from financial institutions, although they are in need of it. Approximately 85 percent suffer from credit constraints.

Bibliographic Details

Main Author:	International Finance Corporation
Format:	Working Paper biblioteca
Language:	English en_US
Published:	Washington, DC 2012
Subjects:	ACCESS TO FINANCE, ACCESS TO FINANCIAL SERVICES, ACCESS TO INFORMATION, ACCOUNTING, AFFILIATES, ASSISTANCE TO BUSINESSES, AUDITING, B2B, BALANCE SHEET, BANK ACCESS, BANK ACCOUNT, BANK ASSETS, BANK BRANCHES, BANK COMPETITION, BANK FINANCING, BANK LENDING, BANK LOAN, BANK LOANS, BANK MANAGEMENT, BANK OFFICIALS, BANK SERVICES, BANKING INDUSTRY, BANKING SECTOR, BANKING SERVICES, BANKS, BEST PRACTICES, BUSINESS ADVICE, BUSINESS ADVISORY, BUSINESS ASSESSMENT, BUSINESS ASSESSMENTS, BUSINESS CENTER, BUSINESS CENTERS, BUSINESS DEVELOPMENT, BUSINESS EDUCATION, BUSINESS ENVIRONMENT, BUSINESS IDEA, BUSINESS MANAGEMENT, BUSINESS MENTORS, BUSINESS MODEL, BUSINESS MODELS, BUSINESS NEEDS, BUSINESS OPERATIONS, BUSINESS OWNERS, BUSINESS PARTNERS, BUSINESS PERFORMANCE, BUSINESS PLAN, BUSINESS PLANNING, BUSINESS PLANS, BUSINESS PROBLEMS, BUSINESS RELATIONSHIPS, BUSINESS RESOURCES, BUSINESS SERVICE, BUSINESS SOFTWARE, BUSINESS STARTUP, BUSINESS STRATEGY, BUSINESS TOOLS, BUSINESS TRAINING, BUSINESS-TO-BUSINESS, CALL CENTER, CAPACITY BUILDING, CAPACITY-BUILDING, CASH FLOW, CASH MANAGEMENT, CERTIFICATE, COLLATERAL, COMMERCIAL BANKS, COMPETITIVE ADVANTAGE, COMPETITIVENESS, CONSULTING SERVICE, CONSULTING SERVICES, CORPORATE BANKING, CORPORATION, COST-SHARING, CREDIT CONSTRAINTS, CREDIT CONTROL, CREDIT GAP, CREDIT REPORTS, CREDIT RISK, CREDIT-SCORING, CREDITS, CUSTOMER BASE, CUSTOMER LOYALTY, CUSTOMER SERVICE, DATA ANALYSIS, DAY-TO-DAY MANAGEMENT, DELINQUENCY RATE, DELINQUENCY RATES, DEVELOPMENT BANK, ECONOMIC DEVELOPMENT, ELECTRONIC MEDIA, EMERGING MARKETS, EMPLOYEE, EMPOWERMENT, ENTERPRISE RESOURCE PLANNING, ENTERPRISE SECTOR, ENTREPRENEURS, ENTREPRENEURSHIP, ENTRY BARRIERS, EXTERNAL FINANCING, FACTORING, FARMER, FINANCIAL ANALYSIS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL NEEDS, FINANCIAL PRODUCTS, FINANCIAL RESOURCES, FINANCIAL SERVICE, FINANCIAL SERVICES, FINANCIAL SKILLS, FINANCIAL SUPPORT, FINANCIAL SUSTAINABILITY, FINANCIAL TOOL, FINANCIAL TOOLS, FINANCING NEEDS, FIRMS, FOREIGN TRADE, GENDER, GEOGRAPHIC REGION, GEOGRAPHIC REGIONS, GLOBAL MARKETS, GROWTH STRATEGIES, HUMAN RESOURCES, IMAGE, IMMEDIATE ACCESS, INFORMATION ASYMMETRY, INFORMATION DISSEMINATION, INFORMATION SERVICES, INFORMATION SHARING, INFORMATION TECHNOLOGY, INSURANCE, INTEREST RATES, INTERNATIONAL BANKS, INTERNATIONAL FINANCE, KEY CHALLENGES, LEGISLATION, LIMITED ACCESS, LOAN APPLICANTS, LOAN APPLICATIONS, LOAN DELINQUENCY, LOAN GUARANTEES, LOAN REQUEST, LOCAL GOVERNMENT, MANAGEMENT INFORMATION SYSTEMS, MANUFACTURING, MARKET DEMAND, MARKET DEMANDS, MARKET INFORMATION, MARKET OPPORTUNITIES, MARKET OPPORTUNITY, MARKET PRICES, MARKET RESEARCH, MARKETING, MEDIUM ENTERPRISE, MEDIUM ENTERPRISES, MICRO BUSINESS, MICROFINANCE, MICROFINANCE INSTITUTIONS, MUTUAL FUNDS, NATIONAL BANK, NETWORKING OPPORTUNITIES, NEW BUSINESS, NEW MARKET, NEWSLETTERS, ONLINE BUSINESS, OPERATIONAL COSTS, OUTREACH, PHONE, PHONE LINE, POOR ACCESS, PRIVATE BANKING, PRIVATE SECTOR, PRODUCT DESIGN, PRODUCT DEVELOPMENT, PRODUCTION CAPACITY, PRODUCTIVITY, PROFITABILITY, PUBLIC BANK, PURCHASING POWER, REPAYMENT, RESULT, RESULTS, RETENTION, RETURN ON INVESTMENT, RISK MANAGEMENT, SELF-HELP, SERVICE PROVIDERS, SMALL BANKS, SMALL BUSINESS, SMALL BUSINESS BANKING, SMALL BUSINESSES, SME, SME CLIENT, SME CLIENTS, SOCIAL RESPONSIBILITY, SPREADSHEETS, START-UP, SUPPLIERS, SUPPLY CHAIN, SUPPORT FOR WOMEN, TAX CODE, TAX LEGISLATION, TAXATION, TECHNICAL ASSISTANCE, TECHNICAL KNOWLEDGE, TELECOMMUNICATIONS, TELEPHONE, TELEVISION, TIME DEPOSITS, TIME PERIOD, TRAINING CENTERS, TRAINING COURSES, TRANSACTION, TRANSACTION COSTS, TREASURY BILLS, USERS, USES, VIDEO, VIDEOS, WEB, WEB PORTAL, WEB SITE, WEB SITES, WHITE PAPERS, WOMEN BUSINESS OWNERS, WOMEN ENTREPRENEURS, WOMEN IN BUSINESS, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/988801468163454790/Why-banks-in-emerging-markets-are-increasingly-providing-non-financial-services-to-small-and-medium-enterprises http://hdl.handle.net/10986/27115
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