Developing a New Business Model for Serving MSMEs
Khushhali Bank Limited, Pakistan
Based in Islamabad, Khushhali Bank Limited (KBL) is the largest microfinance bank in Pakistan, with 118 branches throughout the country serving almost 500,000 borrowers. KBL was founded in 2000 as part of the government’s Poverty Reduction Strategy and Microfinance Sector Development Program, specifically to act as a catalyst in stabilizing the country’s newly formed microfinance sector. CapPlus is KBL’s partner in supporting its transformation into a full service MSME bank.
Results
CapPlus worked with KBL to create and launch an MSME pilot program – it is now KBL’s fastest growing, high-quality portfolio.
Approach
CapPlus was an active partner in designing new products, establishing procedures, and implementing a recruitment strategy to attract the best-qualified loan officers to support the bank’s growth. The CapPlus team worked with KBL to develop a capacity building plan focused on the MSME business pilot, while also examining branch operations, operational efficiency, credit risk management, IT, human capital, branding and marketing, and communications. CapPlus continues to work with KBL in these areas through a long-term technical assistance plan.
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Reliance Financial Services, The Gambia
Founded in 2006 by three Gambian professionals, Reliance Financial Services (RFS) operates as a savings-led financial company deeply committed to the development of the Gambian people. To provide financial services to the “average Gambian,” especially those at the base of the economic pyramid, RFS, with CapPlus support, began serving small businesses soon after its founding and it proved to be a profitable and fast growing segment.
Results
A technology plan developed by the CapPlus team guided RFS through a successful IT system conversion that was critical to supporting the institution’s growth. By following the detailed roadmap to set up in-house IT capacity, RFS is now able to manage its IT infrastructure, assets and activities effectively.
Approach
CapPlus assisted RFS in an IT system conversion and strengthening of its IT department, working to identify overall business objectives, current levels of IT capabilities, and risks associated with the upgrade of the core banking solution. A CapPlus banking expert provided guidance, oversight and implementation support for the IT department, including annual planning and budgeting, asset management, data management, and security.
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IDLC Finance Limited, Bangladesh
IDLC Finance Limited (IDLC) was created in 1985 as the first leasing company in Bangladesh. It is now the largest multi-product, nonbank financial institution in the country, with two subsidiaries on the Dhaka stock exchange, more than 20 branches, and 800 employees. IDLC focuses on the corporate, retail, and SME sectors with aggressive growth plans to be the leader in SME finance in Bangladesh. CapPlus conducted a diagnostic, which served as the basis for a long-term implementation plan to achieve IDLC’sambitious targets.
Results
IDLC is now following a comprehensive roadmap to implement the changes necessary to make SME finance its leading business line. Management wholeheartedly acknowledges CapPlus’ role in assessing its strengths, challenges and opportunities, as well as providing guidance for addressing weaknesses and taking advantage of market opportunities.
Approach
CapPlus conducted a small business banking diagnostic to identify high impact opportunities for improvement. The diagnostic is a comprehensive assessment tool that analyzes the drivers of SME Banking success and overall strategic and operational improvements that are necessary to successfully serve small businesses.
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