Digital Lending Readiness Self-Assessment

Welcome to your Digital Lending Readiness Self-Assessment

Name

Email

Business

Phone

How would you describe your institution's approach to exploring new lending products, particularly for micro, small and medium-sized enterprises (MSMEs)?

We prioritize established, low-risk products and are cautious about exploring new or unsecured lending opportunities. Lending to MSMEs without collateral is very risky.

We are actively considering new lending products, including unsecured options for SMEs, but require further assessment and alignment with our risk management strategies.

We are open to innovative lending solutions and have plans in place to offer unsecured lending to MSMEs as part of our growth strategy.

What is your ambition for an MSME lending portfolio?

We are happy with both the size and risk-level of our current portfolio.

We are happy with the size of our portfolio, but want to reduce risk.

We want to grow our portfolio but keep risk-levels the same.

We are looking to aggressively grow our portfolio, even if it means that NPLs might increase slightly.

How do your customers access bank services today?

We are a digital-first bank

Branch only

All of the traditional ways, but we also have a great app!

Mostly branch, but we also have a website for some basic services

How would you describe the characteristics and needs of the MSMEs you serve, particularly in relation to their ability to engage with digital financial services?

Our MSME clients have varying levels of literacy and digital access; while some are ready for digital services, others may require additional support and education.

Our MSME clients predominantly face challenges with basic financial literacy, digital literacy, and limited access to smartphones or the internet.

We primarily serve urban digital natives who run their businesses online and prefer to access banking services on their smartphones.

Our MSME clients are generally well-equipped with the necessary literacy, digital skills, and access to smartphones and the internet to fully engage with digital financial services.

How well is your core banking system equipped to support digital lending, including the processing of unsecured loans for SMEs?

Our core banking system is outdated and would require significant upgrades or replacements to support digital lending initiatives.

Our core banking system is fully equipped with the necessary digital capabilities to seamlessly support digital lending, including unsecured loans for SMEs. APIs are well and publicly documented.

Our core banking system has some digital capabilities, but may need further enhancements or integrations to fully support digital lending, particularly for unsecured SME loans.

How would you characterize your organization’s ability to manage and leverage data in support of your lending operations?

Our data management systems are outdated or limited, making it difficult to effectively manage and utilize data for lending decisions.

Today, our data management systems are robust and well-equipped to effectively manage, analyze, and leverage data to support our lending operation and we also have access to historical data that’s clean and well organized.

Our data management systems are functional, but could benefit from enhancements to better support data-driven lending operations.

Our data management systems are robust and well-equipped to effectively manage, analyze, and leverage data to support our lending operations.

How prepared is your organization, including your teams, to manage the integration of a digital lending platform into your existing operations?

Our organization lacks the necessary expertise and resources to effectively manage the integration of new digital lending solutions.

Our organization is well-prepared, with the necessary expertise and resources in place to seamlessly integrate and manage a digital lending platform.

We have a dedicated team that manages integrations with external partners on a daily basis

Our organization has some experience with digital integrations, but additional training or resources would be required to fully manage the integration of a digital lending platform

How does your organization typically approach the adoption of new technologies and innovative solutions in lending?

We primarily focus on developing and implementing solutions internally, with minimal reliance on external partnerships.

We actively seek partnerships with fintechs and other external innovators to enhance our lending capabilities and accelerate digital transformation. We have a budget dedicated to this.

We are open to exploring partnerships for innovation, but still prefer to maintain significant control over development and implementation.

Reflecting on your recent experiences with implementing new technologies, how would you describe the outcomes of your most recent collaboration with a technology service provider or other external innovation partner?

The collaboration had mixed results; while some objectives were met, there were areas where we encountered challenges or delays.

The collaboration did not meet our expectations, with significant challenges in implementation and outcomes.

The collaboration was highly successful, with smooth implementation and outcomes that fully met or exceeded our expectations.

Who in the organization is driving the adoption of digital financial services, especially digital lending?

We have a digital or innovation team that provides support to other business units but usually has to really sell hard to convince traditional business units to adopt digital solutions

There are a few people in the organization who are interested, but it’s not within the scope of their roles and they lack power and influence

The commercial leaders in the business, such as Head of SME, are all for digital and are pushing the executives to move more quickly to develop digital as a strategic advantage

The drive for digitization is coming from the top and buy-in has reached all levels of the organization.

Digital Lending Readiness Self-Assessment

For next level business insights