The digital transformation of banking services represents a shift in how Small and Medium-sized Enterprises (SMEs) access and manage financial services. Digital banking platforms have emerged as crucial enablers of SME growth, offering enhanced operational efficiency and improved financial accessibility. These innovative new banks whilst introducing new challenges, presents fresh opportunities to address the persistent SME financing gap.
Digital banking solutions provide SMEs with real-time financial visibility, streamlined invoice management, and diverse payment capabilities, fundamentally altering their operational dynamics. The success of digital banking platforms hinges on their ability to establish trust and provide personalised service delivery while delivering efficient and innovative solutions that address SMEs' evolving needs.
Digital-first institutions’ inherent agility enables rapid adaptation to emerging business models, including the sharing economy and increasingly digitised SME operations. Furthermore, digital banks are catalysts in accelerating SMEs' digital transformation, contributing to improved financial literacy and infrastructure development.
This was discussed at the roundtable “Digital Banks: Powering SME Growth” held at the Global SME Finance Forum 2024. Moderated by Liliana Pozzo, AS/Upstream Mgr. LAC and Europe, IFC, the roundtable brought together key players from global digital and traditional banks to tackle the challenges of SME financing. The discussion centred on innovative approaches, such as partnerships with traditional financial institutions. Participants include Aria Widyanto, Chief Risk and Sustainability Officer, Amartha, Ayodele Olojede, Divisional Head, Retail and SME, Wema Bank, Nigeria, Alexander G. Sotiriou, Senior Financial Sector Specialist, CGAP, Gabriel Ribenboim, CEO & Co-Founder, Impact Bank, Rogério Stallone, Senior Partner, BTG Pactual, Manu Rajan, Division Chief Executive Officer, Wing, Mariane Takahashi, CEO, ABStartups, Wendy Delmar, Chief Executive Officer, Caribbean Association of Banks Inc, Rajeev Chalisgaonkar, Head of Business Banking and NeoBiz, Mashreq Bank, and Dr Vincent Zheng, Deputy General Manager, WeBank.
This report examines how digital banks are reshaping SME finance across emerging markets, highlighting innovative solutions, challenges, and successful adaptation strategies.
