Standard chartered expands SMES products base

KEIKANTSE LESEMELA
Correspondent | Saturday May 11, 2013 00:00

 

'The way we are going to do business is not about coming up with products but coming up with solutions for the market,' she said. She further said the launch of the new products that combines modern technology and the human touch of relationship managers will give the bank a competitive edge as one of the leading financial institutions for SME in the country. The new products include the Working Capital, Business Protection, Business Expansion and Yield Enhancement.The Working Capital enables the customer to manage his cash efficiently with the online banking platform while the Yield Enhancement enables the customer to earn interest on his excess cash with the bank's fixed term deposit account.

'We recognise that our SMEs need the peace of mind and confidence instilled by a dependable support system so the bank is committed to this important segment, which is the key to development of this country,' said Mpho. Head of Consumer Banking Botswana, Duncan Woods highlighted that SMEs plays a large role in developing the economy. He said in 2010 SMEs contributed 42 percent to the GDP in the country and is growing every day into being the backbone of Botswana's economy. Currently the SME sector employs over 300 000 people in Botswana.'It is critical for the banking sector to support the needs of SMEs.  Standard Chartered currently provides an innovative and convenient range of products to nearly nine thousand SMEs in Botswana,' said Woods.Standard Chartered Bank says it is one of a few institutions in Botswana offering competitive terms for invoice discounting and purchase order financing which allows customers greater flexibility in meeting their business obligations. Woods said the bank has aspirations to expand the SMEs internationally.  'We understand the challenges of the SME sector and recognise the importance the segment plays in spurring economic activity and growth, and we will continue to find innovative ways to support our customers,' said Woods.

At the briefing, Global Head of SME Banking, Tim Hinton highlighted that business needs for SME sector are changing very fast. 'The SME segment has grown at almost twice the rate of GDP in most markets, and is expected to grow at 10 to 12 percent annually across our footprint in Asia, Africa and the Middle East. In light of the changing needs of SMEs and their growing importance in the economy, we have strengthened our SME customer offerings. Our ambition is to be the leading international bank for SMEs, building the segment into a multi-billion dollar business over the next two to three years,' he said. The principal activities for SMEs in Botswana range from manufacturing, tourism, construction, services and agriculture.