Simplified servicing: Streamlining lending processes when servicing SME and bilateral loans

Small and Medium Enterprises (SMEs) are pivotal to most economies, especially in developing countries. They constitute around 90% of businesses, provide 50% of employment worldwide, and contribute up to 40% of national income (GDP) in emerging economies. Financial institutions must reimagine and modernize their business lending processes to capture and retain more SME lending growth while reducing costs. Existing frameworks (i.e., people, business processes, and outdated tech) for servicing these businesses have proven to be inadequate, leading to manual processes and making SME lending both risky, unprofitable, and challenging to comply with the regulatory constraints. Therefore, there is a pressing need for financial institutions to find innovative digital solutions to address these needs.