Growth Opportunity for Banks: Corporate Loans for SMEs

For a long time, loans for SMEs were hardly considered on banks' growth agendas. But this trend is shifting. Simon-Kucher's project experience shows that these loans can generate five to 10 percent in additional volume and revenue growth. What key requirements need to be met to achieve these results? Together with Swiss fintech company Teylor, we summarize what you should know when transforming your lending business model.

Small and medium-sized enterprises (SMEs) are the backbone of the European economy. The most important pillar of external financing for these companies is still a bank loan – provided companies resort to one, since around one-third of them currently rule out loan financing altogether. However, the reason for this is less about demand and more about the strict requirements in terms of collateral and disclosure, as well as the high level of bureaucracy involved in submitting applications.

For a long time, the SME segment wasn’t on…