BY BUSINESS WORLD REPORTER
COMMERCIAL banks have crafted new strategies designed to lure small and individual customers into the mainstream banking sector.
The Small and Medium-sized Enterprises (SMEs) segment has been touted as the next growth frontier for deposit takers.
Commercial banks’ managers are looking for means to maximise returns for their shareholder by roping in players in this lucrative market segment.
A cross-section of the banking industry players have already laid down strategies for the small and individual clients with hopes of equipping them with new financial management skills.
Latest on board is Exim Bank Tanzania that has already dished out 13bn/- to support local women empowerment in various parts of the country in the last four years through its Women Entrepreneurs Financing Programme (WEF).
According Exim Bank’s WEF Program Officer Neema Langa, the bank has chosen to support women empowerment in order to enhance their contribution in economic development.
“We chose to empower women due to the fact that their contribution to the country’s economic development can not be under-estimated.
“Ever since the institution of the WEF Programme in 2007, up to 300 women have so far benefited and a total of 13bn/- has been distributed,” she said.
Neema said the bank has also empowered women engaging in small and medium enterprises with basic skills on creating sustainable and profit making businesses.
But according to Exim Bank Women’s Programme Manager Felister Simba, time is ripe for women to be self-reliant.
“Women in today’s generation need to be self-reliant. With due respect, we as Exim Bank have opened up special accounts for women dubbed Tumaini account that has very few conditions,” she said.
She said the bank’s obligation is to sensitize various women groups all over the country to take advantage of the available opportunities in business.
Market watchers contend that, as banks battle over SMEs, it would become easier to access financing from mainstream lenders who offer credit on the strength of a business idea – a sharp contrast to the past when they required collateral, including land and buildings.
SMEs present the banking sector with new growth opportunities since they are in need of finances, while banks look for lending avenues.
"Most SMEs do not have access (to loans), but we are now ready to lend on the strength of the business idea. We know it carries additional risk, but we cannot ignore SMEs," said one of the players.
The clamour for the retail-banking segment has certainly been frenetic with SMEs becoming a compelling business segment for banks, more so with the rise of Africa-Asian trade relations.
Asian economies have suddenly raised the need for financing services to facilitate the roaring trade within the Eastern and Central Africa regions.
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