IFC, a member of the World Bank Group, conducted a global SME Banking survey to better understand the challenges and trends SME banking operations experience in serving the small business segment in their countries. More than 110 SME Banking practitioners and leaders from around the world participated in the survey. The survey findings provide insight into the trends and dynamics of SME finance, identify pain points, and illuminate the future of SME banking in a digitized world.
The results indicate the two biggest challenges SME banks contend with globally are credit risk, with half of the respondents noting this as a top challenge, and external factors, with a third stressing issues such as the macroeconomic environment and government policy changes pose challenges to serving small businesses sustainably. The remaining challenges within the top five cited by respondents are technology adoption, client engagement, and competition.
Source: SME Finance Forum