Technical assistance to a commercial bank to to optimize its SME lending processes by expanding its SME portfolio through new product/service development

Project information

Belgian Bankers Academy was designated by the USAID Nguriza Nshore Activity in Rwanda to provide technical assistance and capacity building to Cogebanque in improving its SME lending processes. The overall objective of the assignment is to support the implementation of Cogebanque’s SME Finance Strategy and directly assist the Commercial Directorate and SME department by optimizing the SME lending processes, mitigate credit risk by growing capacity in SME underwriting through initially targeting and de-risking high priority sectors, developing partnerships along specific agriculture value and supply chains and leveraging technology to improve operational efficiency and client delivery while reducing costs and improving financial performance/ROI.
The activities in the project include segmentation of the SME clients, facilitate the development of products that fits all segments and prioritize service to the segmented SMEs, depending on the bank’s interests; and support and monitor the DFC guarantee and any other guarantee.
The activities in the project are divided in 6 major components:

  • Strengthened Portfolio Analysis and Built Customer Relationships 
  • Collect data on the SME clients of the bank, segment the SMEs by sector/geography/size and prepare a marketing plan
  • Profitability/performance of SMEs calculated, incl. budget for new marketing products developed
  • Credit Evaluation – review credit policy (incl. TAT), credit and procedures manual updated, update flow chards for credit approval
  • Training needs assessment and capacity building to the Commercial Department of the Bank – credit analysis, SME banking deliver, SME portfolio monitoring, etc
  • Support development of products for segmented SMEs – develop new SME products and services for the bank (including digital finance), train respective managers and staff in the delivery of the products, support and monitor the implementation/uptake of any credit guarantees
    A strong focus has been added on digital finance products throughout the whole project.

Status : Ongoing

Date : 07-2021 -> 07-2022

Countries : Rwanda