Skye Bank partners IFC on SME business

SKYE Bank Plc may have gone into a consultancy partnership with the International Finance Corporation (IFC), to evolve an effective lending framework for Micro, Small and Medium Enterprises (MSMEs).

The partnership, which is part of the lender’s efforts to strengthen the operations of Small and Medium Enterprises (SMEs), also has as its objective to produce a new lending framework that de-emphasises reliability on collateral by focusing primarily on evaluating business viability.

Based on this new framework, when a business passes the viability test, the bank can consider non-traditional collateral options outside real estate to reduce the difficulty faced by business owners in their bid to secure credit facilities from banks.

According to a statement issued by the bank, it has also concluded plans to stop charging commission on turnover on all retail current accounts, well ahead of the deadline given by the Central Bank of Nigeria.

The bank’s Head of Retail Banking Group, Nkolika Okoli, said the bank’s new retail strategy has necessitated a shift from its previous product-led to a more segment-led approach.