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Technical Assistance Services

One of the main activities of the SME Unit is facilitating technical assistance to banks in the field of SME Banking through international expertise. This includes setting up SME banking operations with the necessary infrastructure and tools to facilitate the process of extending good quality lending to the SME sector.
The SME Unit has succeeded in facilitating technical assistance to help several banks introduce SME Banking within their operations. Banks are at various stages – and in different circumstances – concerning SME banking. Some are well advanced and have access to SME banking expertise via parent banks and international networks and others are less advanced and have little support. Technical advisory services are provided either through short term or long term interventions.

  • Short term interventions to address specific problems within existing SME banking units operations.
  • Long term interventions to assist banks in establishing SME banking units.
    a. Down Scaling Model.
    b. Up Scaling Model.

The SME Unit has presented two models for the introduction of SME Banking (Up scaling & down scaling) in two of the Egyptian banks. The “down-scaling” model is to change from only focusing on corporate to dealing with Small enterprises whereas, the up scaling model is to graduate from micro lending to very small and small businesses lending. In the up scaling model, there was a challenge faced by the bank as most of microfinance clients are informal accordingly the bank helps them to move from the informal to the formal sector before giving them a VSE loan.

These models were presented through Int’l experts in the field of SME banking through two phases: Diagnostic phase, where the mission’s main objective was to explore the viability and requirements of establishing SME lending / banking pilots within the bank, to better serve both female and male small and medium enterprise owners in Egypt. In this phase also, a decision is to be taken on whether the bank should follow a “down-scaling” or an “up-scaling” model and restructure its activities according to the consultants recommendations and plan. The diagnostic phase is then followed by the implementation phase of the determined model.