First National Bank, a leading financial institution in Ghana, has introduced a new system-based tool to assist Micro, Small, and Medium-scale Enterprises (SMEs) in accessing credit more easily.
This tool, known as the Scored Credit model, eliminates the need for extensive financial statements and documentation, making the process simpler and more efficient for SMEs.
Over the past six months, the bank has piloted the Scored Credit model, with over 250 loans disbursed to eligible SMEs. Currently, there are about 400 more customers whose applications are under review, highlighting the strong demand for such financial solutions in the SME sector.
SMEs play a crucial role in Ghana’s economy, accounting for about 90% of companies, employing 80% of the workforce, and contributing 60% to the nation’s Gross Domestic Product (GDP). Despite their significant impact, many SMEs struggle to access the necessary financing to operate effectively and expand their businesses.
Dinesh Fakir, FNB International Chief Executive Officer, emphasized the bank’s commitment to supporting SMEs, stating, “At First National Bank, our purpose beyond profit is to help, and that’s why we have developed this unique proposition to assist our customers in accessing credit at every stage of their business.”
The Scored Credit facility offers SMEs an unsecured overdraft or term loan with a flexible repayment period of up to 12 months. The minimal documentation required for this loan reduces the cost of assessment, making it more affordable and convenient for SMEs.
Mr. Fakir explained that the system-based approval tool analyzes the transactional behavior of First National Bank customers who have held accounts for a minimum of 6 months and have been in operation for at least 12 months. This helps the bank assess the creditworthiness of SMEs without the need for extensive paperwork.
Clients who have banked with First National Bank for over six months are eligible for Scored Credit. To apply, customers can submit an official request to the bank, indicating the amount, tenure, and purpose of the facility. Additionally, customers can seek guidance from the SME BizHub, the branch, or the Call Center.
One of the beneficiaries of the Scored Credit model, Nancy Amoah, a project consultant at Donsi Villas, shared her positive experience with the facility. She praised the financial advice and support provided by First National Bank through their BizHUB service, which helped her company secure funding for a project and scale up their operations efficiently.
Overall, First National Bank’s Scored Credit model is a significant step towards empowering SMEs in Ghana by providing them with the financial support needed to grow and thrive in the competitive business landscape.
