Mr. Adewale Akinrinde, Group Head, Propositions and Products, Sterling Bank Plc, highlights the various initiatives of the bank to support SMEs but stressed the need for various stakeholders to collaborate to address challenges of the SME subsector.

In recent times, your bank has been aggressively involved with Micro and Small Medium Enterprises (M/SMEs). What would you consider the greatest prospect or opportunities for financing M/SMEs in the country?

The major prospects include increase in demands for locally produced goods and services. Increase in demand for substitutes for imported raw material, and export opportunities to enhance foreign exchange earnings.

And what would you consider as the biggest challenge for banks in terms of financing MSMEs in the country?

Lack of capacity in the running of these MSMEs (over and beyond their passion). Poor book and record keeping. Lack of processes and structures for corporate governance (separation of ownership from management)

Adewale Akinrinde

In your view, do you believe M/SMEs recognize and are addressing this challenge?

A minority of them does, but a majority do not

How is your bank helping M/SMEs to address these challenges?

We introduced the Sterling Bank MSME Business Academy which is a mobile academy that goes round improving the competencies of MSMEs. This has already been held in 6 locations with over 1,100 operators trained.

Also, we improve the competencies across our locations for effective engagement in resolving issues of MSME operators

Sterling bank also provides free Enterprise Resource Planning and &Payment solution (ERP&P) through various partnerships. This helps organizations track information across all departments and business functions, from accounting to human resources to sales and beyond

Additionally, the bank provides innovative loan products with easy structures, less documentation, and no tangible collateral

Despite increased attention and support for SMEs by banks and CBN, most SMEs out there still have this perception that the banking industry is not favourably disposed to SMEs. What can be done to correct this impression?  

As you stated, it is an impression and not the reality. So deal with these negative impressions, we need all stakeholders to come together on the following: Continuous campaign and engagement with SMEs via various platforms; Handholding of SME operators through banking processes and procedures; on its part Sterling Bank and is also developing am MSME connect app to assist the MSMEs get firsthand information on business related issues and network