Innovation and collaboration are crucial

ANM Mahfuz, AMD & Chief Business Officer, Bank Asia

Most banks support SMEs through a variety of services and products designed to address their specific needs. At Bank Asia, however, we offer specialised checking and savings accounts tailored for businesses, often with features like higher transaction limits and integration with accounting software. We also offer different types of loans—such as term loans, lines of credit, and working capital loans—to help SMEs manage cash flow, expand operations, or invest in new opportunities.

In terms of payment processing, we provide merchant services that enable SMEs to accept payments via credit/debit cards, online transactions, and mobile payments. Additionally, we offer consultancy services in the form of financial advice and planning to help SMEs with business strategies, financial management, and growth planning.

Financial literacy is a major aspect we need to focus on if we want to develop the SME sector. At Bank Asia, we arrange workshops, webinars, and other educational resources to help SMEs develop their business acumen and stay informed about industry trends and best practices.

Reaching small and medium enterprises (SMEs) in rural and hard-to-reach areas is challenging but crucial for economic development. We offer branch-less banking services through mobile banking units, agents, and kiosks to help reach remote areas. These mobile units provide basic banking services and educate rural customers about financial products. We believe that collaborating with local cooperatives, microfinance institutions, and non-governmental organisations (NGOs) can extend our coverage, as these organisations often have established relationships and trust within rural communities. We also offer designated banking products to meet the needs of rural SMEs, such as agricultural loans and equipment financing.

As for our future plans regarding SMEs, we aim to expand our consultancy services to assist SMEs with financial planning, business development, risk management, and regulatory compliance. We plan to facilitate more mentorship programmes and networking opportunities where SMEs can connect with industry experts, successful entrepreneurs, and potential business partners. Our bank also plans to offer flexible loan repayment schedules and restructuring options to accommodate the fluctuating income cycles and financial challenges that SMEs often face.

The government can ensure the presence of a comprehensive database on SMEs, including industry-specific information and performance metrics. Banks and non-banking financial institutions should have access to government publications, market research, and industry reports.

The government can also introduce a unique Business Identification Number (BIN) for SMEs to simplify the identification and verification process. There should be timely updates on relevant policies, regulations, and compliance requirements affecting SMEs. All financial institutions should be given clear guidelines on Group SME Finance funding opportunities and other incentives available for SMEs.

Encouraging and supporting SMEs to adopt digital tools and technologies can improve efficiency, market reach, and competitiveness. Providing training and resources for digital literacy is crucial.

Simplifying regulatory requirements, reducing bureaucratic red tape, and providing clear guidelines can make it easier for SMEs to start and grow.