Banks told to adopt innovative approaches and flexible lending criteria to SMEs

Head of Business Banking at Access Bank (Ghana), Kafui Bimpe has highlighted the measures banks should follow to address the challenges in the partnerships between  Small and Medium Scale Enterprises (SMEs) and banks.

He identified common issues including stringent loan requirements, high interest rates, and a lack of tailored financial products for SMEs as some of the bottlenecks in the partnership.

“To overcome these challenges, banks need to adopt innovative approaches and flexible lending criteria,” he said.

Additionally, he added, policy recommendations such as improving the regulatory environment, enhancing financial literacy among SMEs, and fostering public-private partnerships can further support SME growth. Encouraging SMEs to adopt ESG practices can also attract more investment and improve their market competitiveness.

In the area of future prospects, Mr Bimpe said that the future of SME financing is evolving, with emerging trends such as fintech innovations, crowdfunding, and venture capital gaining traction.
Source: 3news

 

 

 

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