Technology-Enabled Supply Chain Finance for Small and Medium Enterprises is a Major Growth Opportunity for Banks
In most emerging markets, small and medium enterprises (SMEs), lack access to the credit and liquidity they require for their daily working capital needs. This is partly due to the fact that the credit risk of such businesses is typically difficult...
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International Finance Corporation, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/104991502947116592/Technology-enabled-supply-chain-finance-for-small-and-medium-enterprises-is-a-major-growth-opportunity-for-banks http://hdl.handle.net/10986/30365 |
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okr-10986-303652021-05-25T10:54:41Z Technology-Enabled Supply Chain Finance for Small and Medium Enterprises is a Major Growth Opportunity for Banks Saleem, Qamar Hommes, Martin Sorokina, Aksinya SUPPLY CHAIN SME FINANCE SMALL AND MEDIUM ENTERPRISES ACCESS TO FINANCE TRADE FINANCE FINANCIAL TECHNOLOGY AUTOMATION SCALABILITY SIMPLICITY BLOCKCHAIN DISTRIBUTED LEDGER TECHNOLOGY CREDIT RISK RISK MANAGEMENT In most emerging markets, small and medium enterprises (SMEs), lack access to the credit and liquidity they require for their daily working capital needs. This is partly due to the fact that the credit risk of such businesses is typically difficult to assess and their working capital needs are unpredictable. In most countries these businesses operate primarily in the retail and wholesale trade segments, and banks have generally not done enough to finance their domestic or international trade operations, especially open account transactions. Supply chain finance structures offer an alternative solution to finance the trade flows of these enterprises, with benefits for all stakeholders, including large enterprises, their SME trade counterparts, and financial institutions. This type of financing helps banks extend working capital finance to SMEs by leveraging commercial and trust relationships between the SMEs and corporates; it helps large corporates improve their working capital management and decreases supply chain disruptions; and it enables banks to better assess, measure, and manage the risks of extending financing to SMEs. 2018-09-06T19:16:46Z 2018-09-06T19:16:46Z 2017-06 Brief http://documents.worldbank.org/curated/en/104991502947116592/Technology-enabled-supply-chain-finance-for-small-and-medium-enterprises-is-a-major-growth-opportunity-for-banks http://hdl.handle.net/10986/30365 English EMCompass,no. 39; CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo International Finance Corporation International Finance Corporation, Washington, DC Publications & Research Publications & Research :: Brief |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
| topic |
SUPPLY CHAIN SME FINANCE SMALL AND MEDIUM ENTERPRISES ACCESS TO FINANCE TRADE FINANCE FINANCIAL TECHNOLOGY AUTOMATION SCALABILITY SIMPLICITY BLOCKCHAIN DISTRIBUTED LEDGER TECHNOLOGY CREDIT RISK RISK MANAGEMENT |
| spellingShingle |
SUPPLY CHAIN SME FINANCE SMALL AND MEDIUM ENTERPRISES ACCESS TO FINANCE TRADE FINANCE FINANCIAL TECHNOLOGY AUTOMATION SCALABILITY SIMPLICITY BLOCKCHAIN DISTRIBUTED LEDGER TECHNOLOGY CREDIT RISK RISK MANAGEMENT Saleem, Qamar Hommes, Martin Sorokina, Aksinya Technology-Enabled Supply Chain Finance for Small and Medium Enterprises is a Major Growth Opportunity for Banks |
| relation |
EMCompass,no. 39; |
| description |
In most emerging markets, small and
medium enterprises (SMEs), lack access to the credit and
liquidity they require for their daily working capital
needs. This is partly due to the fact that the credit risk
of such businesses is typically difficult to assess and
their working capital needs are unpredictable. In most
countries these businesses operate primarily in the retail
and wholesale trade segments, and banks have generally not
done enough to finance their domestic or international trade
operations, especially open account transactions. Supply
chain finance structures offer an alternative solution to
finance the trade flows of these enterprises, with benefits
for all stakeholders, including large enterprises, their SME
trade counterparts, and financial institutions. This type of
financing helps banks extend working capital finance to SMEs
by leveraging commercial and trust relationships between the
SMEs and corporates; it helps large corporates improve their
working capital management and decreases supply chain
disruptions; and it enables banks to better assess, measure,
and manage the risks of extending financing to SMEs. |
| format |
Brief |
| author |
Saleem, Qamar Hommes, Martin Sorokina, Aksinya |
| author_facet |
Saleem, Qamar Hommes, Martin Sorokina, Aksinya |
| author_sort |
Saleem, Qamar |
| title |
Technology-Enabled Supply Chain Finance for Small and Medium Enterprises is a Major Growth Opportunity for Banks |
| title_short |
Technology-Enabled Supply Chain Finance for Small and Medium Enterprises is a Major Growth Opportunity for Banks |
| title_full |
Technology-Enabled Supply Chain Finance for Small and Medium Enterprises is a Major Growth Opportunity for Banks |
| title_fullStr |
Technology-Enabled Supply Chain Finance for Small and Medium Enterprises is a Major Growth Opportunity for Banks |
| title_full_unstemmed |
Technology-Enabled Supply Chain Finance for Small and Medium Enterprises is a Major Growth Opportunity for Banks |
| title_sort |
technology-enabled supply chain finance for small and medium enterprises is a major growth opportunity for banks |
| publisher |
International Finance Corporation, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/104991502947116592/Technology-enabled-supply-chain-finance-for-small-and-medium-enterprises-is-a-major-growth-opportunity-for-banks http://hdl.handle.net/10986/30365 |
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