Presentation by Matt Gamser, Sao Paulo April 2013.

1. Innovation in SME Finance
Matthew Gamser
Head, SME Finance Forum
Sao Paulo, April 2013

2. The SME Finance Forum
Part of
Hosted by
Launched on April 19, 2012

3. Achievements to date
 News/reports on SME finance with
daily feeds
 Growing LinkedIn group: over 1300
members
 Promotion of innovative approaches
to promote SME finance/SME
Finance Challenge
 Data sharing/harmonization
 Policy dialogue (G20/AFI)
 Impact analysis
 Women’s Finance Hub launched 21
April 2013!

4. Our Team
Matthew Gamser, Head
mgamser@ifc.org
Hourn Thy, Operations & Technical Supports
hthy@ifc.org
Nadia Afrin, KM & Web Communication
nafrin@ifc.org
Minerva Kotei, Women’s Finance Hub
Mkotei@ifc.org
Nothando Nyathi, Administration
nnyathi@ifc.org
Support for the SME Finance Forum:
Support for the G20 Finance Innovation Fund
provided by:
Donors

5. 82-86% (~ 0.8-0.9 Tn) of total credit gap of formal SMEs in
emerging markets is represented by formal SMEs that already
have a deposit account

6. managed well, SME Banking can be very profitable…
Key observations
• ROE can be very attractive (up to 25-35%)
• Margin compression inevitable but can be negated
by establishing a “total wallet” P&L
• Key profit drivers are typically deposits and
transaction banking, representing between 50-60%
of total SME business profitability
• Need to take a 5-year view of product profitability
“We want to double in 3 years. Returns are the best in the
Group. Risk-returns are now twice as high as all our
consumer banking businesses”
Global Product Head, SME Banking Standard Chartered
Sept.2010
Faster Revenue Growth………..
Higher RoA’s………..
6
SME
Finance
Gap
Challenges
in SF
IFC –
What &
How
IFC and
G-20
IFC
Footprint

7. Performance in SME Banking can be highly volatile if the right
capabilities are not put in place…
SME ROA
PERCENT
SME Banking rewards those with the right
capabilities in placeSource: Mckinsey
7
SME
Finance
Gap
Challenges
in SF
IFC –
What &
How
IFC and
G-20
IFC
Footprint

8. Myths and Opportunities #1

9. Myths and Opportunities #2

10. Myth Opportunity
3. It’s all about banks Banks matter, but so do
partnerships - with real
sector large firms, and
others.

11. and

12. On the Web at www.smefinanceforum.org
LinkedIn Group: SME Finance Forum
Twitter: @SMEFinanceForum