Description
Between July 2021 and July 2022, BBA supported Cogebanque (mandated by USAID via Nguriza NShore Activity) to optimize its SME lending offering and strengthen its operational efficiency through:
In-depth diagnosis of the SME portfolio
Segmentation of customers by sector (agriculture, trade, light industry, services), size, and geographical area
Analysis of the profitability and performance of each segment
Interviews with managers to identify obstacles (manual processes, approval times, monitoring of guarantees)
Overhaul of credit processes
Comprehensive review of credit policy, manual, and decision-making workflows
Simplification of procedures to speed up processing times (digitization of forms, automation of first-line controls)
Updating flowcharts and creating innovative scoring models
Development of tailor-made products and services
Design of financing solutions tailored to agricultural and non-agricultural value chains (local shops, crafts, micro-service businesses)
Integration of digital finance solutions: mobile banking loans, e-wallet platforms, SMS alerts for monitoring due dates
Development of shared guarantee products (DFC, public/private co-financing) to reduce perceived risk
Internal capacity building
Assessment of the SME department's training needs (credit analysis, portfolio management, use of digital tools)
Design and facilitation of practical workshops (45 hours in total): case studies, scoring simulations, training in new software
Individual coaching for managers to ensure ownership of new processes
Performance monitoring and management
Deployment of an automated KPI dashboard: approval rate, average time to approval, share of digital products, outstanding guarantees
Quarterly performance review workshops with management and iterative adjustments
Final report: strategic recommendations and roadmap for the next 12 months
Key impacts
+25% of loan applications processed within 48 hours
30% of the SME portfolio now on digital channels
15% reduction in the bad debt ratio thanks to a more refined scoring policy
Launch of 3 new products (e-wallet microcredit, business bridge loan, shared agro-industrial guarantee)
Role of BBA
- Enhanced analysis and segmentation of the SME portfolio
- Review and update of credit policies and procedures
- Design of new lending products and digital services for SMEs
- Assessment of training needs and facilitation of capacity-building workshops
- Support for the deployment and monitoring of credit guarantee mechanisms