Skye Bank Plc in a consultancy partnership with the International Finance Corporation (IFC) have developed an effective lending framework for medium enterprises and SMEs. The new lending framework would ensure loans are made available for SME’s and de-emphasize collateral but put more focus on business viability.
Each business in need of the loan would be subjected to a viability test and screening and when such business passes the viability tests, the bank can consider non-traditional collateral options to reduce the difficulty bank loan access has become to business owners.
According to a statement issued by the bank quoting their Head of retail Banking group, Nkolika Okoli, it is said the bank has concluded plans to stop charging commission on turnover (COT) on all retail current accounts, well ahead of the deadline given by the Central Bank of Nigeria.
“The bank’s new retail strategy has necessitated a shift from its previous product led to a more customer eccentric approach. The business focus would henceforth concentrate more on customers and less on products using unique value propositions built around the needs of each customer segment. This is Skye Bank’s effort to recognize unique needs of each customer based on their economic worth and provide solutions to meet these needs.”
Okoli said that in addition to its in-house SME loans for small and medium business owners, Skye Bank is also one of the SME-friendly banks appointed by both the Central Bank of Nigeria and the Bank of Industry to disburse the federal government’s MSME support funds. And with the recent acquisition of Mainstreet Bank and the latest modern banking application software by Skye, the bank now has more reach, presence and is better able to serve its Retail customers efficiently.
As a way of supporting small business owners and making this loan available in the hands of every interested customer, Skye Bank had begun a training program for SME owners in the six geo-political zones of the country to enable overcome business challenges, they are trained on how to access the government Medium Small-Medium Entreprise MSME intervention funds.
They are also taught the use of technology to drive business and operational efficiency, cashflow management and the importance of networking for success.