Report on APAC SME Banking Conference 2013 in Malaysia - Bangladesh Bank … · 2013-08-05 · Case...
Transcript of Report on APAC SME Banking Conference 2013 in Malaysia - Bangladesh Bank … · 2013-08-05 · Case...
General Manager of SME&SPD, addresses international programmes : BB’s initiatives and
Honorable Governor’s leadership lauded.
General Manager of SME & SPD Mr. Sukamal Sinha Choudhury attended APAC SME Banking
Conference 2013 in Malaysia during 15-16 May, 2013 and attended SBBN CEO & Senior Leaders
Roundtable, 2013 in Dubai during 20-21 May 2013. In both the programmes he delivered
presentation on the SME initiatives and achievements in Bangladesh. General Manager in his
speech lauded leadership and contribution of Honorable Governor Dr. Atiur Rahman which was
appreciated by the participants and guests presented in both the programmes.
Report on APAC SME Banking Conference 2013 in Malaysia
APAC SME Banking Conference 2013 was held during 15-16 May, 2013 at THE ROYALE
CHULAN HOTEL, KUALALUMPUR, organized by FLEMING GULF CONFERENCES, under
cooperation with CYBER VILLAGE, ASIAN BANKERS ASSOCIATION AND ASIAN
AFFAIRS BUSINESS COUNCEL. This conference was arranged in order to bridge the gap
and unlock the growth opportunities in SME Banking.
A. Events of conference
1. Deliberation by the finest industry experts
2. Deliberation by the Central Bank of Bangladesh i.e., Bangladesh Bank (the
only central bank present in the conference)
3. Case study presentation
4. Problem solving sessions
5. Interactive panel discussions
6. Guru Panel, Fleming Gulf Conference
7. Deliberation by Dato Hafsah Hashim, CEO of SME Corporation Malaysia (He
gave an idea of today’s Asian economies, charting the future directions,
potential rewards of SME untapped market, current issues and challenges of
SME, forecasting the future market of SME
8. Dr. Marcus Lee, Chief Economist of Hampton Court Investment Bank
explored business opportunities for foreign SMEs in China
9. Case study presentation by Mr. Victor Lee Meng Teck, Managing Director,
Group Head of Business Banking, United Overseas Bank. The case study
included key trends affecting SME’s access to finance, opportunities for SME
financing in South- East Asia under adverse economic circumstances and
global recession and new initiatives to support growing and wide range of SME
financing entities.
10. Interactive panel discussion on Increasing loans on micro financing for SMEs
in developing countries, Loan guarantees and bank support to engage in SME
lending, loan vs equity financing, regional development fund vs variety of existing
funds.
11. Deliberation on SMEs by Reynaldo P Orsoline, First Senior Vice President for
Commercial and SME banking, RCBC Bank giving emphasis on the following issues:
a. Maximum automation of SME loans origination
b. Re evaluation with reduced operational costs on SME portfolio
c. Measuring on portfolio management as the core risk management
function d. Managing the F/E risk for SMEs
12. Deliberation by Malcolm Athaide, President and Country Head of Business
Banking, Retail Banking, Inclusive and Social Banking of Yes Bank Ltd on
transformation of risk management in SME lending
13. Deliberation by Donald Lim Kee Hong, Head of Business Development, CIMB
Bank on SME Relationship Management
14. Deliberation by Datuk Zainal Abidin Hj Mohammed, Head of Business
Relationship CIB, Business Banking SME and ICBU of Amislamic Bank, Malaysia
on Islamic Banking for SME which included Shariah compliant financing for SMEs,
Initiative by
MoF, SME Corporation, Association of Islamic Finance Malaysia on 2% rebate for
SMEs
15. Deliberation by Steven Kenneth Miller, EVP & Head of Group Business Banking
of Alliance Financial Group on using analytics to drive relationship
management and innovation in SME banking
16. Deliberation by Syed Mohsin Ali Shah, EVP and Head of Cash
Management, Corporate Banking, Bank Alfalah Limited on challenges and
opportunities for the SME sector
17. Only central bank participated is Bangladesh Bank. Mr. Sukamal Sinha
Choudhury, General Manager of SME and Special Programs Department spoke
on central bank’s policy initiatives and role on SME financing and
development. Initiatives of Bangladesh Bank under the leadership of Dr. Atiur
Rahman were highlighted which received appreciation from foreign countries’
representatives.
18. Case study presentation by Kittima Thongket, SVP, SME Marketing &
Business Development, Bank of Ayudhya PLC on changing SME Banking
landscape, incorporating technology wise, product solutions and marketing
19. Deliberation by Zeeshan Mustafa, SVP & Head of Product Development,
SME Banking, Burj Bank Ltd. on putting the right marketing strategies
20. Deliberation by Rohit Garg, Head of Business Banking, UAE, Egypt and Qatar,
Mashreq Bank PJSC, UAE on the middle east perspective cross settling
opportunities in the SME needs spectrum
21. Deliberation on cross border financing for supporting SME trading by
Azrin Azizuddin, Manager of Business Support & Promotion Department,
Business Division, Exim Bank
22. Roundtable discussion on the following seven topics by seven groups of
participants, each group for one topic
a. Is the dependency on relationship manager a challenge to SME banking
industry? Are banks only looking into ready talent in the market?
b. Are SME clients needed to be taught the preparation of banks required
documents and they will only being entertained at relationship manager
level?
c. What are the key differences between lending to SMEs and lending to
large companies?
d. A r e the new competitors increasing? How does it affect SME banking
in future?
e. Is credit bureau helping lending institutions with their evaluation and
information for a variety of uses?
f. How to identify the external resources (funding/technical support)
to complement their resources
g. How does your strategy give competitive advantage in the target market?
B. Outcome of the program
1. Getting opportunity to hear firsthand experience from world leaders working in SME 2. Sharing knowledge, experience and solutions for overcoming the latest
challenges in the field of SME 3. Beginning of a long term business association with all
4. Exploring new ideas and innovations
5. To go forward for enduring association
C. Sponsoring organizations
1. Cyber village (www.cyber-village.net)
2. Terato tech
D. Supporting associations
1. The Asian Bankers Association
2. Asean Affairs Business Council (www.aabcouncil.com)
E. Media partners
1. Capital Business
2. Asian Banking and Finance
3. MSME News Network
4. Malaysia SME
5. Conference Locate
6. Oxford Business Group
7. Business Islamica
8. The Emerging Finance
9. Asia Today
10. The Paypers
11. Alhuda center of Islamic Banking and Islamic Economics (CIBE)
12. BVents
13. Amilin.tv
14. BanksDaily.com
15. PrivateBanking.com
16. True Banking
F. Participating organizations
1. Agrani Bank, Bangladesh
2. Agro Bank, Malaysia
3. Ahli United Bank B.S.C (AUB), Bahrain
4. AlHuda Centre of Islamic Banking and Economics, UAE
5. Alliance Finance Group, Malaysia
6. AmBank(M) Berhad, Malaysia
7. Amilin TV, Malaysia
8. AmIslamic Bank, Malaysia
9. ASEAN AFFAIRS, Thailand
10. Bangladesh Bank, Bangladesh
11. Bank Alfalah Ltd, Pakistan
12. Bank of Ayudhya, PLC, Thailand
13. Bank of Thailand, Thailand
14. Burj Bank Limited, Pakistan
15. CIMB Bank, Malaysia
16. Cyber Village, Malaysia
17. DFCC Bank, Srilanka
18. EXIM Bank, Malaysia
19. Export Import Bank, Malaysia
20. EXIM Bank, Bangladesh
21. Hampton Court Investment Bank, China
22. Hong Leong Bank, Berhad, Malaysia
23. HSBC Bank, Berhad, Malaysia
24. International Finance Corporation, Vietnam
25. Malaysia Land Transport Authority, Malaysia
26. Malaysia SME and MSME News Network, Malaysia
27. MARA Industrial and Business Development, Malaysia
28. Mashreq Bank, UAE
29. MayBank Berhad, Malaysia
30. Microfinance Bank Bai Tushum and Partners, Kyrgyzstan
31. National Bank of Oman, Oman
32. RCBC Bank, Philippines
33. RHB Banking Group, Malaysia
34. Security Bank Corporation, Philippines
35. SIMAH-Saudi Credit Bureau, Saudi Arabia
36. SME Corporation, Malaysia
37. Societe Generale, India
38. TBA, Egypt
39. Terato Tech Sdn Bhd, Malaysia
40. The Export Import Bank of China, China
41. Times of Money Ltd., India
42. United Overseas Bank, Singapore
43. Vietnam Bank, Vietnam
44. Yes Bank Ltd., India
G. Initiatives to be taken by SME and Special Programs Department, Bangladesh Bank
1. Continue communication with the following organizations for exploring areas
of cooperation in future and make linkages with Bangladeshi organizations:
a. SME Corporation, Malaysia
b. Hampton Court Investment Bank,
China c. Alliance Financial Group
d. United Overseas
Bank e. SME Bank
Malaysia
f. RCBC Bank
g. Yes Bank, India
h. CIMB Bank
i. AmIslamic Bank, Malaysia
j. Bank of Ayudhya, PLC, Thailand
k. Burj Bank Ltd.
l. Mashreq Bank PJSC, UAE
m. Exim Bank
n. ASEAN Affairs Business Council
2. Making linkages of Bangladeshi Islamic Banks with Islamic Banks of Malaysia and
other Islamic Banks of other Islamic Countries.
3. Cooperate with Fleming Gulf for holding very suitable workshop/conference, training
in Dhaka, Chittagong or Cox’s Bazar with participation of all Banks, NBFIs and
SME related organizations of Bangladesh bringing experts from dedicated banks,
organizations around the globe from whom our stakeholder may learn and
forge linkages.
4. Continuing communication with all sponsors, supporting associations for exploring
future cooperation.
Report on
SBBN CEO & Senior Leaders Roundtable, 2013
May 20-21, 2013, Dubai
US based Small Business Banking Network (SBBN), which is a CAPITAL PLUS
Exchange initiative, arranged 2-day CEO and Senior Leaders Roundtable on
the “Future of SME Banking” during 20-21 May 2013 at Media Rotana Hotel in
Dubai. The SBBN is a global industry-building initiative that significantly
helping financial institutions (FIs) in emerging economies to expand their
capacity, competency for serving small and growing businesses. The
CapitalPlus Exchange, however, strengthens FI’s ability to target underserved
entrepreneurs and communities profitably.
The SBBN CEO & Senior Leaders Roundtable is aimed to expand access to
financial services among underserved small business owners and micro
entrepreneurs in emerging economies and to share the learning more broadly
in the field. At this roundtable peers from different countries were connected
to discuss emerging innovations and the future of SME banking. More than 50
key banking experts, leaders and speakers from across the globe gathered
together. SBBN member and non-member participants also attended the
program. They showed commitment to building their small business segment
coming to the global event, discussed the challenges, opportunities and a
vision for this sector. There were presentations and discussions about
international small business banking strategies, tools and resources, case
modeling, expert perspectives and enlightening peer inputs with practical
techniques to strengthen financial institutions. Individual experiences and
insights of all participants contributed to the roundtable’s collaborative
environment.
The donors for running exchange initiatives and programs are International
Finance Corporation (IFC), Belgian investment Company for Developing
Countries (BIO), Ford Foundation, Gatsby Foundation, Levi Strauss Foundation
and Evslin Foundation. SBBN is an initiative of exchange which offers peer
learning services and trainings to financial institutions that serve the small
business banking segment in developing countries around the world.
It is believed that bankers learn best from other bankers who have succeeded
in meeting the demand of small business banking services. The SBBN is a
natural extension of CapitalPlus Exchange’s deep experience in developing,
implementing and managing access to ‘best in class’ expertise and resources
focused on unleashing the provision of finance to small enterprises in
emerging economies.
The only central bank participated in the roundtable is the Central Bank of
Bangladesh i.e. Bangladesh Bank. General Manager, SME & Special Programs
Department Mr. Sukamal Sinha Choudhury spoke on the 1st day of the
program on “SME portfolio credit stress testing program by BB”. He also
focused on initiatives and role of BB as central bank and leadership of
Governor Dr. Atiur Rahman in SME activities in order to ensure employment,
women empowerment, poverty reduction and overall economic development
of Bangladesh. Initiatives of BB as a central bank were appreciated by all the
participants.
The agenda of first day i.e. 20 May, 2013 was on the Future of SME Banking:
focusing on emerging trends, managing risk and customers for the future.
Events of the First day
(i) The keynote session was delivered by Clifton Kellogg, Director of the State Small
Business Credit Initiative, US Department of Treasury (USA) on the “ What’s
Emerging: Forecasting Trends in SME Banking”. This presentation focused on
accommodating changes in order to address the SMEs for future.
(ii) Deliberation by Lynn Pikholz, CEO & President of CapitalPlus Exchange/SBBN
(USA) on Benchmarking Small Business Banking. Findings of the recently
published SBBN’s Small Business Banking (SBB) success factors benchmarking
study were given emphasis.
General Manager , SMESPD, BB Mr. Sukamal Sinha
Choudhury (Extreme Right) spoke in the Roundtable.
Group photo of the participants in the roundtable,
2013
(iii) Principal and Executive Coach of Design for Learning & Change (USA) Mr. Prinny
Anderson presented global future trends in SMEs for accommodating the
changes in human capital management system.
(iv) A deliberation on “Early Warning Signs in SME Portfolio” was done by Mr.
Manish Jaiswal, Senior Director, CRISL (India). This session addressed how risk
ratings and analytics are changing the SME landscape and how FIs can take
advantage of existing data to determine warning signals in their portfolio while
building their business.
(v) General Manager, SME & Special Programmes Department of Bangladesh Bank
Mr. Sukamal Sinha Choudhury delivered a unique presentation on the session
of “SME Portfolio Credit Stress Testing Program-Bangladesh Central Bank
Perspective”. This deliberation mainly focused on the initiatives and forward
looking activities of Bangladesh Bank for SME financing and development; and
also stressed the introduction of Stress Testing program by BB for a systematic
and strong SME banking.
(vi) Dennis J. DiDonna, CEO & Co-Founder, Entrepreneurial Finance Lab (USA)
presented on psychometric testing which focuses on fundamental
entrepreneurial qualities; and which works as a tool to reduce/eliminate the
need for credit report and collateral.
(vii) Traditional Credit Scoring Models were presented by Michael Gallagher, Senior
VP of Wells Fargo Bank (USA). His deliberation has given an idea of
adapting/applying “credit scoring’ in emerging economies where databanks
needed for credit scoring and credit bureaus are currently being scaled up.
(viii) The last session of the 1st day was on an approach to credit scoring and was
moderated by Mr. Rajeev Kakar, EVP & Regional CEO of CEEMEA Region for
Fullerton Financial Holdings (Fullerton) and Founding MD & CEO of Dunia
Finance LLC (UAE).
(ix) At last Ms. Carol Musyoka, Founder & CEO of Carol Musyoka Consulting (Kenya)
summarized all the presentations of the 1st day.
The 2nd day focused on the following sessions emphasing to emerging markets, new
channels and automation technologies. The sessions of the 2nd day also focuses on
unique approaches to successful small business banking practices.
Sessions of the 2nd Day:
(i) At the beginning of the 2nd day Ms. Selin Oz, SME Strategic Planning and
Business Development Manager of Garanti Bank (Turkey) and Ms. Carol
Musyoka, Founder & CEO of Carol Musyoka Consulting (Kenya) jointly
presented on “Women-The Emerging Market of Emerging Markets”. With the
moderation of SBBN’s President & CEO, this presentation focused on how to
overcome the systematic challenges of women entrepreneurs. They gave the
special reference to Garanti Bank (a Turkish Commercial Bank).
(ii) In the next session Mr. Stanislaus Deh, Head of SME Banking, Stanbic (Ghana)
focused Ghana’s experience on global presence of small business in
international trade. This session gave an idea some of the opportunities and
challenges in the African region.
(iii) Andrew Charles McCartney, Senior Global Banking Specialist, IFC (UAE) had a
deliberation on “Evolution of Mobile Banking: Payment module to SME
banking”. This session reviewed the developments of mobile banking
technology from its erstwhile money transfer role to a more robust
infrastructure to assist FIs manage their SME business across emerging markets.
(iv) A presentation on “ Remote Banking on the Move” was delivered jointly by Anil
Nath, Country Head-Business Banking, HDFC Bank Ltd. (India) and Gregory
Chen, Regional Representative for South Asia, The Consultative Group to Assist
the Poor (CGAP), Bangladesh with moderation by Jenny Hoffman, Director of
Risk Frontier (U.K). In this session HDFC shared their experiences on branchless
banking, mobile banking and CGAP provided a status review focusing
Bangladesh’s scenario.
(v) Joaquim Mascarenhas, CEO of Mpower Human Capital Solutions (India) have
made an impressive presentation on “Human Capital Requirements &
Challenges of Remote Banking” with special experiences from the Indian
banking market.
(vi) The last session was delivered by Sandy Vaci, Senior Lecturer, Business School
of the Central European University (Hungary) & Chairman of the Board, Credit
Bank of Moscow (Russia) and V. Sencer Demirel, SME Banking, Strategic
Planning & Central Marketing Manager, Garanti Bank (Turkey) under
moderation of Gerry Monterio, EVP, CapitalPlus Exchange/SBBN (USA). This
session focused on the diversity of SME’s needs and risk profiles that requires
an integrated customer management approach for FI’s success and discussed
the Best-in-Class practices in Garanti Bank which is a leading Turkish bank.
(vii) Finally, the program was closed by a closing remark by Gerry Monterio.
Outcome of the Program
(a) Getting an idea about emerging trend in SME Banking;
(b) Benchmarking of small business;
(c) Early warning signs in SME portfolio;
(d) Stress testing program;
(e) Psychometric testing;
(f) Credit scoring;
(g) Emphasizing women’s program by some banks;
(h) Mobile technology to assist FIs manage their SME business;
(i) Remote banking i.e. agency banking, branchless banking and mobile banking;
(j) Customer management approach for financial institution’s success.
Steps to be taken by SMESPD, BB
(a) Communication and collaboration with SBBN;
(b) Extend cooperation for arrangement of program in Dhaka by SBBN on the following
areas-
a. Program on SME banking strategy for CEOs of all Banks & NBFIs
b. Experience to gather from leading SME focused Banks & NBFIs
c. How to make SME banking profitable?- a program for all Banks & NBFIs
d. Mitigating risk on SMEs
e. Program on credit scoring, benchmarking and psychometric testing
f. Arranging a program on supervision and monitoring of SMEs for central
bankers.
(c) Continue communication with the following organizations and explore areas of
cooperation, make linkages with Bangladeshi organizations for further cooperation-
a. Small Business Credit Initiative, US Department of the Treasury (USA)
b. CRISL/ Risk and Infrastructure Solutions, CRISL (India)
c. Entrepreneurial Finance Lab (EFL), USA
d. CEEMEA region for Fullerton Financial Holdings (Fullerton)-a subsidiary of
Temasek Holding, Singapore
e. Dunia Financial, LLC (UAE)
f. Carol Musyoka Consulting, Kenya
g. Garanti Bank, Turkey
h. HDFC Bank Ltd., India
i. The Consultation Group to Assist the Poor (CGAP), USA
j. Risk Frontier, UK
k. Mpower Human Capital Solutions, India
l. Axis Bank Ltd., India.
(d) Communicate with IFC regarding mobile banking, payment services for SME
banking. For reference communication may be made with Andrew Charles
McCartney, Senior Global Banking Specialist, IFC, UAE.
Participation from the following Organizations-
1. Axis Bank Limited, India
2. Bangladesh Bank, Bangladesh
3. Carol Musyoka Consulting, Kenya
4. The Consultation Group to Assist the Poor (CGAP), USA
5. Commercial Bank of Africa, Kenya
6. Credit Bank of Moscow, Russia
7. CRISL Risk & Infrastructure Solutions, India
8. DCB Commercial Bank Limited, Tanzania
9. Design for Learning & Change, USA
10. Entrepreneurial Finance Lab (EFL), USA
11. Equator Capital Partners, USA
12. Equity Bank, Kenya
13. First Gulf Bank, UAE
14. Fullerton Financial Holdings, Singapore
15. Fullerton India Credit Company Limited
16. Garanti Bank, Turkey
17. HDFC Bank, India
18. IDLC Finance Limited, Bangladesh
19. International Finance Corporation (IFC)
20. Janalakshmi Financial Services, India
21. Khushhali Bank, Pakistan
22. Madison Finance Company Limited, Zambia
23. Mpower Human Capital Solutions, India
24. Pubali Bank Limited, Bangladesh
25. Reliance Financial Services, Gambia
26. Risk Frontier Consultants Limited, UK
27. Sathapana Limited, Cambodia
28. Savings House Mazhnosti, Macedonia
29. SMEP DTM Limited, Kenya
30. Standard Bank Group, South Africa
31. Tanzania Women’s Bank Limited, Tanzania
32. TUHF, South Africa
33. US Department of the Treasury
34. Wells Fargo, and
35. Small Business Banking Network (SBBN), USA.