2020 Global SME Finance Forum Call for Insights E-publication CROWDSOURCING THE FUTURE OF SME FINANCING 1 INTERNATIONAL FINANCE CORPORATION 2020 All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 www.ifc.org The material in this work is copyrighted. Copying and/or The contents of this work are intended for general transmitting portions or all of this work without permission informational purposes only and are not intended to constitute may be a violation of applicable law. IFC encourages legal, securities, or investment advice, an opinion regarding dissemination of its work and will normally grant permission the appropriateness of any investment, or a solicitation of any to reproduce portions of the work promptly, and when type. 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Crowdsourcing the Future of SME Financing. Retrieved from www.smefinanceforum.org 2 Acknowledgements Special thanks to Sarah Chataing, Aswathi Krishnan, Jessica Alfaro, Gillette Conner, Celine Melhem, Mohan Chen, Carina Carrasco, Dzifa Oluwole and Hourn Thy for supporting this publication, and to the whole SME Finance Forum team for promoting it to members and others worldwide. This version is available on https://www.smefinanceforum.org/library/publications November 2020 3 Table of content Acknowledgements ................................................................................................................................... 3 Preface ..........................................................................................................................................................6 Introduction ...............................................................................................................................................8 Beyond finance ..........................................................................................................................................10 Sarita Arora: Why SME Banking champions of today are more likely to be sidelined tomorrow? .......11 Satyam Agrawal: From ‘Underserved’ to ‘Contextual & Personalised’: Is SME Financing finally set to leapfrog this decade? ................................................................................................................................ 12 Sean Hunter: The future of SME lending: How to leverage tech to support the Missing Middle ........ 14 Serge-Richard Petit-Frère: A promising future for SMEs by 2030 .............................................................. 16 Steve Landman: Today’s Disruption Is Tomorrow’s Progress. What SME finance will look like in 2030? ................................................................................................................................................. 18 Susan Holliday: Collaborating and novating for Growth ..............................................................................20 Thiago Oliveira de Paiva: The SME leap inLatin America ..............................................................................22 Thomas J. DeLuca: Rethinking the Government Playbook for SME Support in the Next Crisis ..........24 Trevor Hambayi: African Poverty - SME Impact Investment the Solution.................................................26 Divergences ................................................................................................................................................28 Max Johnson: What will SME financing look like in 2030? ..........................................................................29 Mikhail Treyvish: Radical changes in the SME world as a challenge for the financial industry ............. 31 Modise Motloba: Inclusive Financing and Innovation as a Catalyst for SME Growth ............................. 33 Mohan Ma, Tyler Aveni: SME Financing Development Empowered by FinTech in Asia ......................... 35 Nadia Sood: The FutureIs Bright ........................................................................................................................ 37 Nagachethan SM: Making the UnFIT to be FIT: Case of India for MSME Financing in 2030.................39 Omar Chedda: Global OnlineMarketplace Platforms .................................................................................... 41 Omotolani Ketiku: Disruption in Data Availability and Behavioral Mechanism ........................................43 Embedded/Invisible finance ....................................................................................................................44 Mariya Yesseleva-Pionka, PhD: Blockchain for SME Finance and the Policy Environment ...................45 Matthew Saal: The Future of SME Finance is Invisible ................................................................................... 47 Matteo Rizzi: SME Financing Ecosystem in 2030: towards a full synergic collaboration ecosystem .....................................................................................................................................49 Product innovation ................................................................................................................................... 51 Edo Omic, Merve Akinci: An integrated SME financing sector for greater social inclusion .................. 52 Anders la Cour: 20/20 hindsight to boost SME finance ...............................................................................54 Atul Narayan Save: What SME finance will look like in 2030? .....................................................................56 Bo Brustkern: The future of SME Finance .......................................................................................................58 Brian Pallas: Opportunity from Crisis ................................................................................................................60 Carissa Reiniger: There is No Better Risk Than Small Business ................................................................... 61 Carter Hoffman: SME financing in 2030: The role of people in a technology powered future ...........63 4 Celine Ho: SME finance as an ecosystem offering customized bundled product ..................................65 Charl du Plessis: How to Bridge Africa’s SME Financing Gap by 2030 ...................................................... 67 Craig Moore: SME Finance Outlook 2030 .......................................................................................................69 Dileep Rao: How Areas Can Build Growth Ventures Without Venture Capital ........................................71 Dino Setiawan: Digitizing the supply chain to bank the unbanked ............................................................ 73 Shuo Wang, Danni Lai, Duoguang Bei, Xiugen Mo: Inclusive financing models .................................... 75 Country Visions/Regional Visions .......................................................................................................... 77 BEN Shenglin, Wenwei Li, Man Luo: Digital Technologies Promoting SME Financing Innovation ...... 78 Onur Terzi: Ultimate Turn for Agribusiness Finance.......................................................................................80 Paul Disselkoen: Future Finance to Serve a Changing World ......................................................................82 Rachel Freeman, John Kane: Knowing you, Knowing me - The SME Bank of the Future ....................84 Raja Debnath, Rachel Freeman: Big Tech Takes Over ...................................................................................86 Robert Scheunpflug: SME Lending in 2030 – The China Perspective.......................................................88 Salman Alibhai, Rachel Coleman, Toni Weis: Investing in (Micro) Equity, Performance Based Lending