NTB-GIZ partnership to improve access to finance for SMEs

Nations Trust Bank PLC and the SME development program of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH entered into a public private partnership (PPP) to improve access to finance for small and medium size enterprises (SMEs).

Nations Trust Bank, one of the fastest growing commercial banks in Sri Lanka, has successfully rolled out a 58-branch network offering services to the small and medium entrepreneurs across many parts of the county and through the partnership with GIZ-SME Development Programme, the bank plans to further increase its outreach to the SME sector which is a key focus at present for the bank.  

The SME development program is implemented by GIZ on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), in partnership with the Ministry of Finance and Planning. As a federally owned enterprise, GIZ supports the German government in achieving its objectives in the field of international cooperation for sustainable development.

The SME development program works on improving and strengthening Sri Lanka’s growing SME sector through a range of technical assistance activities focusing on improving access to finance for SMEs, improving competitiveness of SMEs through innovation and technology transfer, and creating an enabling policy environment.

Recognising that lending methodologies and products currently offered by banks may not be appropriate for SMEs and may hinder them from obtaining finance from banks, the SME development program will partner with selected banks to support them to sustainably enhance their credit portfolio to SMEs by establishing dedicated SME units in banks, building capacity of bank staff;, developing SME focused lending methodologies, procedures and tools, and introducing SME focused products.

Simultaneously, there will be capacity building of SMEs to improve access and effective utilisation of services offered by banks. Through these activities, the program aims to achieve longer term impacts such as generation of employment and income, more equitable social and regional distribution of economic benefits, and inclusive and environmentally sustainable growth.

Nations Trust Bank is focused on providing a wide range of products to small and medium entrepreneurs. The Nations Business Centres that have been opened in Anuradhapura, Kurunegala, Batticaloa, Galle, Kuliyapitiya, Chilaw and Ratnapura are positioned as a one-stop-shop that has been set up to offer financial solutions to the SMEs.

Nations Business Centres are equipped with skilled staff to assist customers with their day-to-day financial requirements, offer advisory services and guide them towards the use of the SME Tool Kit – which is a website available in Sinhala, Tamil and English and contains useful tools, tips and information to further expand their business.

Nations Business Banking is an exclusive proposition aimed at the SME segment with platinum and gold membership privileges which translates to a special set of benefits including a lucrative rewards scheme which is also a part of the offering to the SME segment. Nations Trust Bank is currently on an expansion mode and will soon open a number of Nations Business Centres in many more locations to enhance the services offered to SMEs in the country.