WBI Courses and Events New Technologies for Small- and Medium-size Enterprise Finance
 
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Building the Pillars of Financial Sector Governance
Preliminary Agenda

Wednesday, December 4, 2002

0830 Breakfast (outside H Auditorium, World Bank H Building, 600 19th Street, NW, Washington, D.C.)
0900

Session I: The Landscape for New Technologies and SME Finance

In the wake of early optimism about the impact of Internet finance and an expected ‘revolution’ in financial services, observers have noted important variations in the way new technologies are affecting different markets. As some analysts suggested in 2000, the ‘transforming effect’ will not occur overnight; for example, a survey of Internet banking in Latin America in 2000 noted that 4.7% of Latin American households have a computer, compared with close to 50% in the U.S. This session will survey countries’ preparedness for new financial technologies, and identify the lessons that financial institutions and countries have learned about applying new technologies. The session will also explore the role of the SME sector, and its potential as a profitable market for financial institutions.
     

0900–
0915

Opening Address

     
0915–
0935

New Financial Technologies: Global Trends, National Experiences, and SMEs

This work will offer a panoramic survey of countries’ preparedness for new financial technologies and the current application of e-finance in the SME sector.
     
0935–
0955

The Importance of the SME Segment to Banks in Developing Countries

What are the contributions of SMEs to growth and economic development? Are SMEs valuable to banks as a market segment? This presentation will explore the current and potential value that the SME segment holds for foreign and domestic banks in developing countries. It will assess the opportunity for profitable and sustainable business in SME finance.
     
0955–
1015

What Are the Key Lessons Learned About Applying New Technologies to SME Finance?

This work will present the key lessons that financial institutions have learned about using financial, communication and information technologies to foster SME finance. Based on the International Finance Corporation’s experience with assisting clients in developing countries through the Financial Technologies Global Initiative, this work will lay out the strategic options financial institutions have in developing countries to profitably extend financial services to SMEs.
     
1015–
1045

Coffee Break
     
1045

Session II: Market Research

This session takes the first step toward developing a strategy for SME finance: analysis and segmentation of markets. Speakers will share perspectives on the competitive landscape of certain markets; assess the quality of current financial service offerings for target markets; and discuss methods for identifying target consumers. What is the impact of entering an SME market on the competitiveness and profitability of the bank? What is the extent of penetration into SME markets?
     
1045–
1115

Usage of New Technologies for SME Lending

This presentation will draw on Gartner's research experience with new financial technologies to assess the status of technology usage among SME lenders. How are these technologies adding value in the market for SME finance? What is Gartner's assessment of the future potential for new financial technologies for SME clients, particularly in developing countries?
     
1045–
1115

Usage of New Technologies for SME Lending

This presentation will draw on Gartner's research experience with new financial technologies to assess the status of technology usage among SME lenders. How are these technologies adding value in the market for SME finance? What is Gartner's assessment of the future potential for new financial technologies for SME clients, particularly in developing countries?
1115–
1145

Differentiating Markets for SME Finance

Through a structured facilitation process and thoughtful primary research, Monitor is able to identify a new consumer segmentation that captures the financial value of different consumer groups. This presentation will explore new approaches to segmenting markets for SME finance, to help banks choose target consumers and identify areas for adding value.
     
1145–
1230

Strategy for Entering SME Markets: A Bank's Perspective

This presentation will offer a bank’s perspective on how to enter the market for SME finance. What is the impact of on the competitiveness and profitability of the bank? What strategies have worked best? Based on these experiences, what should we expect for the future of this market?

  • Dennis Osbourne, Vice President, Business Banking, International ScotiaBank
     
1230–
1400

Lunch (Dining Room, World Bank MC Building, C-1 Level, 1818 H Street, N.W., Washington, D.C.)

  • Keynote Speaker: Dr. Roger S. Leeds, Professor and Director, Center for International Business and Public Policy, Johns Hopkins School of Advanced International Studies
     
1400

Session III: Products and Services

Based on analysis of market segments, this session will identify the types of products and services that will bring greatest value-added to target SMEs. For example, in Europe, over 70% of retail financial services’ profit comes from savings and investment products. Some banks have taken advantage of technologies that improve the way they manage clients’ portfolios in areas such as: credit, savings, payment and collection services, as well as newer applications.
     
1400–
1500

Products and Services with a Proven Track Record for Adding Value in SME Finance

This panel will lay out the products and services that have a demonstrated track record and proven value for banks serving SMEs. For example, credit, savings, Internet offerings, and other value-added services will be explored. The panel will discuss the profitability of these products.
     
1500–
1545

Frontier Products and Services in SME Finance

This panel will expand upon the previous discussion to address promising new offerings that show strong potential.
     
1545–
1615

Products and Services for Reaching the Poorest Enterprises

This panel will discuss the products that have been tailored to serve the very poor, often remote, small enteprises in developing countries. How do these products work, and how do lenders achieve sustainable business with them?
     
1615–
1630

Coffee Break
     
1630–
1730

Towergroup Reporrt on Products and Services and Discussion

Based on the product and service research that Towergroup has conducted over the years for its clients, this session will present their conclusions of what has worked and what has not worked for banks in SME markets. Following the presentation, the speaker will facilitate a discussion with the audience.
     
1730–
1830

New Technologies Marketplace (outside H Auditorium)
     
1900–
2100

Dinner and Cocktail Reception (East Dining Room, C1 Level, Main Complex Building, 1818 H Street, N.W.)

  • Harold Rosen, Director, CSMDR, International Finance Corporation
     

Thursday, December 5, 2002

0830–
0900

Breakfast (outside H Auditorium)
     
0900

Session IV: Delivery Channels

Financial institutions that have successfully penetrated the SME market have been able to achieve a paradigm shift to a “mass-customized” approach, by re-evaluating their distribution channels. As industry analysts have observed, a successful approach might combine “bricks and clicks” delivery, using a lighter branch network to respond to consumer preferences, establish brand recognition, and offer specialized points of service. At the same time, the advantages of electronic delivery—the “clicks”—are convenience, lower overhead, more competitive pricing, and ability to offer third party products. This session will explore the opportunities and costs of various delivery channels, including mobile kiosks, and Internet banking.
     
0900–
1000

How Do Banks Make the Best Use of Delivery Channels to Reach Small- and Medium-size Enteprise Clients?

This panel will discuss their experiences with adapting existing delivery channels, and implementing cost-effective new technologies to serve small, geographically dispersed clients efficiently.
     
1000–
1100

Using Rural Delivery Channels to Reach Rural SME Clients

This panel will discuss the unique challenges that lenders face in delivering financial services to remote rural SMEs. Which approaches have worked?

     
1100–
1115

Coffee Break
     
1115

Session V: Information Infrastructure

Investing in information infrastructure within banks and among banks has proven to be critical for improving operating efficiency, growth and management of asset quality.

     
1115–
1230

Investing in Information Infrastructure for Financial Institutions

This session will address the technologies and opportunities available for improving: back office systems; management information systems; customer relationship management systems; and decision-making systems. How do these improvements contribute to the profitability and sustainability of financing SMEs?
     
1230–
1400

Lunch (East Dining Room, World Bank MC Building, C-1 Level, 1818 H Street, N.W., Washington, D.C.)

  • Keynote Speaker: Thomas Gibson, President, Institute for SME Finance, Washington, D.C.
     
1400–
1500

Strengthening Infrastructure for Financial Systems—Credit Bureaus

The information in credit bureaus can be a critical part of financial system infrastructure, helping to reduce lending costs and creating valuable “reputation collateral” to consumers and small businesses that lack significant physical assets. Credit bureaus are well-established in many developed countries, but are a relatively new phenomenon in many developing nations. Even in the United States, sharing of small business data by banks is undergoing constant change. This session will look at the incentives leaders have to share credit information, especially on business customers, as well as on the decision management tools which add value to these data.
     
1500–
1530

Strengthening Credit Information to Improve SME Access to Finance

How can policymakers, financial services providers, and SMEs themselves contribute to building up an appropriate information infrastructure—a key element for better access to finance and e-finance? This paper will synthesize experiences of various developing countries to suggest the key steps that should be taken for building an efficient credit information system.
     
1530–
1600

Coffee Break
     
1600–
1700

Discussion

Participants will consider the appropriate steps that should be taken to facilitate delivery of services to SMEs and transfer of financial information about small businesses in their countries. Which delivery channels are most efficient? What investment choices should banks and countries make to strengthen infrastructure within banks and among banks?
     
1700–
1800

New Technologies Marketplace (outside H Auditorium)
     
1900–
2100

Dinner (East Dining Room, World Bank MC Building, C-1 Level, 1818 H Street, N.W., Washington, D.C.)
     
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Friday, December 6, 2002

0830–
0900

Breakfast (outside H Auditorium)
0900

Session VI: Policy and Strategic Challenges: Looking Forward

In order to capture the potential benefits of new technologies, policymakers, regulators, and private sector practitioners need to create an enabling environment for competitive, and cost-effective electronic finance. Building this environment will require collaboration across industries and disciplines: telecom, information, and regulation are vital components.
     
0900–
1015

How Can Regulators and Policymakers Improve the Environment for SME Finance?

How can regulators and policymakers inject more competition into the market for lending to SMEs? How does the regulatory landscape need to change in order to capture the benefits of new technologies? Policymakers and regulators need to create an enabling regulatory environment for competitive, cost-effective, and secure electronic finance. This panel will address competition policy, regulatory challenges, and other policy concerns for improving the environment for lending to SMEs.
     
1015–
1030

Coffee Break
     
1030–
1130

Implementing Automated Decisioning Systems

Wells Fargo has applied a unique credit scoring model and automated account monitoring system that has enabled the bank to become the leading small business lender in the US. What can banks in developing countries learn from the successful strategies employed at Wells Fargo?

  • Marc Bernstein, Executive Vice President, Business Direct, Business Banking Group, Wells Fargo
     
1130–
1230

Leading Banks Discuss Their Experiences and Lessons Learned

Leading banks will address the lessons they have learned from applying new technologies for SME finance. How have they differentiated themselves? Which investments have been the most important? What challenges lie ahead for extending finance to SMEs?
     
1230–
1400

Lunch (H Building Cafeteria, 1st floor, 600 19th Street, N.W., Washington, D.C.)
     
1400

Adjournment
     

 
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