Supply Chain Financing for Informal MSMEs
Informal retail MSMEs face distinct challenges: their scarce working capital has to be balanced between a range of products that need to be stocked, to avoid losing customers. Retailers also need to be present in their shops to operate. Leaving the shop for extended periods of time to go to a bank branch, for example, results in lost revenue.
Banks need to provide business-focused financial services to MSMEs, including supply chain financing.
Learn more about how our platform enabled the biggest bank in Africa to rapidly deploy a supply chain financing solution in partnership with the world's largest FMCG manufacturer while maintaining <1% loan default rate.
This case study was included in the ICF Handbook titled Technology and Digitization in Supply-Chain Finance.
The handbook was prepared by the Digital Financial Services team of IFC’s Financial Institutions Group for the benefit of further progress in the development of supply chain finance. It serves as a resource guide specifically for financial institutions in emerging markets seeking to implement digital supply chain finance solutions. The full Handbook is available for download from the IFC website.
Interested in learning more?
Schedule a call with our team to discuss our digital banking and supply chain financing solutions for cash-first markets.