Post-covid SME Lending Landscape

Source: Moody`s Analytics

On May 31, SME Banking Club, together with Moody’s Analytics, organized a webinar on the post-covid SME Lending Landscape and digitalization of the industry.

At the begging of the webinar Olena Gryniuk (SME Banking Club) presented the results of the SME Banking Club Digital SME Lending Study for the year 2021, which showed that among the analyzed banks and non-financial banking organizations in the CEE region, 24% offered online loan applications, and 13 % had a fully digital lending process.

Then, Helen Tunstall (Moody’s Analytics) demonstrated and compared the SME Lending Landscape before, during, and after the pandemic COVID-19.

What is the current situation in the SME Lending Landscape now?

1. The onboarding & KYC becoming more onerous.

2. Information gathering is slow.

3. The legacy silo systems.

4. The Challenger Banks – new SME lenders.

5. The climate risks to lending decisions.

6. The impaired loans and the insolvencies from the pandemic.

After that, Helen Tunstall highlighted the common objectives for all SME lenders. They are the seamless onboarding & KYC process, customer retention & increased market share, automated data entry, decision making & improved funding, customer centricity, and enhanced customer satisfaction.

In the next part of the webinar, Nelson Almeida (Moody’s Analytics) presented the opportunities facing SME lenders. They are non-traditional data and modeling capabilities, technology, digital engagement, and service diversification.

Then, Nelson Almeida highlighted the SME lender opportunities.

Among them are:

1. The information-gathering.

2. The lending assessment.

3. The lending presentation and loan structuring.

4. The decisions and documentation.

5. The servicing and collections.

6. The monitoring and portfolio managing.

He also noted that smart lending decisions are obtained from Automation and Analytics. Moreover, the usage of AI and Machine Learning do better predictive modeling, intelligent routing in line with policies, speeding decisions, and closing.


To learn more details, watch the full webinar below: