SME Finance Report

SME Finance Report

July 2022
USD 300

All industries and sectors have been uniquely disrupted by the pandemic, causing companies to revisit their strategies as they look to react to the current environment and plan for the future. SMEs increasingly expect a fully integrated product and service platform from which to access financial solutions and services to run their business, reduce operating cost, and expand regionally and beyond. In this context, banks have accelerated the digitisation and automation of their SME operations and processes and are progressing in building a platform from where SMEs can access everything in one place.

The SME Finance Annual Report delves into business finance to explore the latest trends, the aftermath of the COVID-19 pandemic, main players and their developments. It provides key financial and operational benchmarks for stakeholders to help them to stay ahead of the game.

Interviews for this report were conducted between February and April 2022 with 22 commercial banks, P2P fintech lenders and digital SME banks across 10 Asia Pacific countries, including Australia, China, Hong Kong, South Korea, Indonesia, Malaysia, Philippines, Singapore, Taiwan and Thailand.

Publication date:

31 July 2022


The file is directly delivered into your account provided soon after online payment is received.

The document is supported in PDF MS PowerPoint format and contains 61 slides.

The report includes:

1. Analysis of key barriers commercial banks face in SME financing

2. Overview of Industry SME loan structure and loan size by country

3. Understanding of alternate business financing and future prospects of the industry

5. Building an integrated product and service platform for SMEs

6. Future trends in SME banking

This report answers:

1. What are the key concerns SMEs have?

2. How banks can unlock opportunities with automation and digitisation?

3. How banks can develop an ecosystem of financial and non-financial services?

  • 1. Where should banks focus on in SME banking

    • 1.1. Number of SMEs and classification by turnover for micro, small and medium SMEs
    • 1.2. Leading banks in SME banking and key characteristics
    • 1.3. Organisational models in SME banking
    • 1.4. Understanding the operational concerns of SMEs
    • 1.5. Key challenges banks face in servicing SMEs
    • 1.6. Key areas banks are focusing on
    • 1.7. Unlocking opportunities in digital banking
  • 2. Market overview

    • 2.1 Industry loan structure (SME, Corporate, Retail, 2021)
    • 2.2 Industry SME loan size and growth (2019-2021)
    • 2.3 Contribution of the SME business to overall bank revenue (2021)
    • 2.4 Average loan size per full time employee in SME banking (2021)
    • 2.5 Portion of fee income to total SME revenue (2018/2021)
    • 2.6 Profitability in SME banking (ROA, CIR, net income per SME) (2021)
    • 2.7 Leading net promoter score (NPS) in SME banking by country (2021)
  • 3. State of alternative business financing

    • 3.1 Total alternative business funding volume in Asia Pacific (excl. China, 2013-2020)
    • 3.2 Alternative finance by key models and top countries (market place business lending, balance sheet lending, invoicing, excl. China 2018-2020)
    • 3.3 Alternative lending markets and key players/characteristics (2021)
    • 3.4 Digital banks focused on SME banking (2021)
    • 3.5 Financial solutions by Big-tech and platforms (2021)
  • 4. Simplify the business, become digital to the core

    • 4.1 Key features/trends and benchmarks in ESG financing
    • 4.2 Industry benchmarks for cross-sell ratios for relationship and non-relationship managed accounts
    • 4.3 Industry benchmarks for digitally active SME customer base (2021)
    • 4.4 Industry benchmarks for processing time across five key sub processes for a small ticket size working capital loan (2021)
    • 4.5 Industry turnaround times for five key loan products (2021)
    • 4.6 Cost-of-acquisition for small enterprises and medium/large enterprises via eKYC and branch banking (2021)
    • 4.7 Industry benchmarks and automation of e-trade processes (2021)
    • 4.8 Deployment of RPAs and key industry benchmarks (2021)
    • 4.9 Industry benchmarks of a relationship manager’s time structure (2021)
    • 4.10 Industry benchmarks in the product innovation cycle (2021)
  • 5. Develop an ecosystem of solutions

    • 5.1 Deliver key value propositions in an SME ecosystem of solutions
    • 5.2 Key service features offered by banks in SME banking
    • 5.3 Scope of services to help SMEs transform into a digital business model
    • 5.4 Benefits and challenges it building ecosystem partnerships
    • 5.5 Key ecosystem solutions currently considered by banks
    • 5.6 Unsecured merchant financing via 3rd party platforms
  • 6. Future trends to watch in SME banking

  • International and regional banks evaluating, entering, expanding, offering SME services in Asia Pacific.
  • Non-banking financial institutions evaluating the SME finance market in Asia Pacific.
  • Researchers in financial institutions, regulatory bodies, government agencies and investment companies.
  • Vendors considering the market trends for technology investments in SME finance.

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