London, 1 July 2015 – Though a traditional role for banks, lending is not easy and can result in nonperforming loans. Consequently, when banks do not have sufficient information to build a borrower’s risk profile, they prefer not to lend at all. In commercial and industrial lending, this decision affects the banks’ opportunities to grow the business and affects small- and midsize-enterprise borrowers, which are not risk-rated. What can a bank do to improve its SME credit-underwriting process and assess the risk profiles of companies too small to be rated in traditional credit-scoring systems?
This research, based on April and May 2015 interviews, identifies emerging vendors’ innovative solutions that banks could use to minimize or remove major factors that cause SME nonperforming loans. It focuses on European, African, and Asian players and profiles Ant Financials, Spotcap, iwoca, RainFin and M2North, Remitia, and EZD.
This 21-page Impact Note contains six figures and one table. Clients of Aite Group’s Wholesale Banking & Payments service can download this report.