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SME Access to Finance Issue

Australian Risk Climate: SMEs Riskiest after Four Years in Business

Equifax recently urged Small and Medium Enterprises to keep a closer eye on finances as they approach their four-year milestone Small and Medium Enterprises (SMEs) approaching their four-year anniversary[1] are entering the highest-risk period for business failure and should take extra steps to protect their business from financial stress, according to newly released data from Equifax, the global information solutions ... Read More »

IFC and Mastercard Expand Partnership to Drive Greater Financial Inclusion in Emerging Markets

Mastercard and IFC, a member of the World Bank Group, today bolstered their partnership to drive financial inclusion, updating a $250 million global risk-sharing facility to expand access to electronic payments in emerging markets. Electronic payments help underserved people and small businesses more fully participate in the formal economy. Yet, financial institutions in emerging markets often have difficulty covering their ... Read More »

Equifax Blends Consumer and Commercial Data to Deliver Substantial Small Business Risk Prediction

Equifax Inc. (NYSE:  EFX) has announced the launch of the blended version of the Commercial Insight™ Delinquency Score, a high-performance product that predicts the likelihood of a business incurring severe delinquency (91 days or greater), charge-off or bankruptcy on financial accounts within the next 12 months.  The latest addition of this product suite is the first solution to combine consumer ... Read More »

Small Business Financial Exchange in Partnership with LexisNexis Risk Solution

Small Business Financial Exchange, Inc. and LexisNexis Risk Solutions to Create Small Business Data Sharing Platform between Banks and Insurers LexisNexis Risk Solutions, a technology, data and analytics company, announced today that the Small Business Financial Exchange, Inc. has approved a data sharing arrangement where the insurance companies and SBFE Member (comprised of small business lenders) can participate in sharing ... Read More »

TransUnion CIBIL Launches CIBIL MSME Rank to Help Control NPAs

In order to support banks and credit institutions to achieve robust credit growth in the Micro, Small and Medium Enterprises (MSME) sector while managing the non-performing assets (NPAs), TransUnion CIBIL launched CIBIL MSME Rank (CMR) – a credit risk rank for MSMEs. CMR uses machine learning algorithms to predict the probability of an MSME becoming NPA in the next 12 ... Read More »

Amazon eyes underbanked customers with checking account partnership talks

Online mega-retailer Amazon could get into the checking account business, as the company reportedly sees underbanked markets — including millennials — as a prime opportunity. Amazon has held talks with the likes of JPMorgan Chase and Capital One for a “checking-account-like product” that would be accepted at its website and Whole Foods, according to The Wall Street Journal. The product would reportedly ... Read More »

CRIF and Hong Kong Based FundPark Enter into a Strategic Partnership

CRIF and FundPark, a trade finance platform in Asia focusing on the SME segment, enter into a strategic partnership to provide SMEs with credit risk and trade finance solutions. Thanks to FundPark’s flexible trade finance solution and CRIF’s business information services, it will be possible for SMEs to satisfy their financing needs while minimizing credit risk. Relying on its international ... Read More »

Equifax Launches Commercial Credit Data Sharing Solution to Support SME Lending

Equifax, the consumer and business insights expert, has launched a new solution to support the government Commercial Credit Data Sharing (CCDS) initiative seeking to stimulate competition and encourage new entrants in SME lending thereby addressing the shortfall in access to finance. The new Equifax solution gives lenders a comprehensive picture of a businesses’ financial health to facilitate faster and more ... Read More »

De-risking: Why Banks Are Ditching SMEs as weak as FinTech SMEs — Without Warning

Post-financial crisis regulations have forced banks to become more diligent and aggressive against financial fraud, including money laundering. In response to new rules, financial institutions in the U.K. have heightened their practice of de-risking — that is, withdrawing bank accounts or other financial services from customers deemed to be high-risk.  Financial institutions assure authorities that their increase of de-risking practices ... Read More »

Banks to Pilot new Concept for Blockchain-based Supply Chain Finance

Three international banks, three large corporates and four fintech startups have announced a pioneering project that will explore how blockchain technology can be used to track physical supply chains while unlocking access to financing for sustainable sourcing.  The year-long project will kick off in January and involve Unilever, Sainsbury’s and Sappi together with Barclays, Standard Chartered and BNP Paribas, which will ... Read More »

SME Access to Finance: Amazon Lending & Six Alternative Funding Options for Your Business

Amazon Lending & Six Alternative Funding Options for Your Business Amazon Lending is an invitation-only short-term business loan that helps Amazon sellers fund inventory purchases.  But it’s not something growing sellers can tap for other business needs like marketing, facilities, or staffing.  For these, sellers must turn to funding sources like Payability, savings, or credit solutions. Here’s what to expect ... Read More »

The Microfinance Financial Inclusion Model Appears not to be Working

The World Bank published recently a Policy Research Working Paper 8252 which indicates that Microfinance is not as effective as originally intended. Microfinance is generally seen as a way to fix credit markets and unleash the productive capacities of poor people who are dependent on self-employment. The microfinance sector has grown quickly since the 1990s, paving the way for other ... Read More »

U.S. Risk Climate: Why Aren’t Businesses Borrowing?

There have been all manner of odd developments as far as the economy has been concerned this year. Consumer confidence has been consistently high but until very recently the pace of retail activity has been sluggish. The unemployment rate has been at a twenty year low and that should have triggered inflation by this time but that wage driven inflationary ... Read More »

Duedil and Credit Data Research Join Forces

DueDil, the company information platform, announces that it is joining forces with Credit Data Research, market leader in credit behavioural analysis, to boost access to business finance. The two firms – both participants of the Nesta’s Open Up Challenge – have established a joint initiative to boost the level of information available about private companies and tear down barriers in ... Read More »

Russian Small Business Community is Poised to Take on a Larger Share of the Economic Activity

Small business accounts of 30% of the annual revenue of Russian businesses.  This assessment is based on an analysis by Credinform Russia of financial statements of the fiscal year of 2016. Since the beginning of market reforms in Russia, economists have argued about the important role of small business in the development of the domestic economy, as exemplified by other ... Read More »

Banks Need to Fear E-commerce Company’s Ambitions

Banks around the world have spent the past few years preparing for competition from small, nimble technology startups. It turns out the real threat may be Jeff Bezos and Jack Ma. Financial institutions have parried the threat from fintech firms by incorporating some of their innovations through partnerships and in-house coding teams, according to McKinsey & Co.  In its annual banking report, ... Read More »

Embracing New Technology: More Small Businesses Taking Credit/Debit Payments

Small business owners look like they’re embracing new technologies when it comes to the types of payments their businesses will accept, allowing more in-person credit and debit card payments using point-of-sale terminals. According to the latest Wells Fargo/Gallup Small Business Index conducted in early October, 39% of business owners now accept credit or debit card payment, up from 31% in ... Read More »