Non-Financial Services: The Key to Unlocking the Growth Potential of Women-Led Small and Medium Enterprises for Banks

Women-led small and medium enterprises (WSMEs) represent a great opportunity to banks: women own 34 percent of private businesses globally, including almost six million formal SMEs in the developing world. In emerging markets, formal SMEs create seven out of ten jobs and contribute up to 40 percent of economic growth in terms of GDP. In OECD countries the contribution to growth can be up to 60 percent. Yet WSMEs’ enormous potential remains largely untapped due to systemic barriers facing women-led enterprises globally.

This study examines the benefits to banks of integrating non-financial services (NFS) that can help mitigate these barriers into a women-focused SME banking proposition. Analysis of five SME banking models, in addition to previously published case studies and other resources, found that well-integrated NFS offers for WSMEs yield positive return on investment (ROI) within one to two years.