SME Finance

Course details

Lending to SME customers presents one of the greatest opportunities for commercial banks to pursue growth and profitability; at the same time it ties up a large amount of economic capital and represents substantial credit risk. Taught by an internationally experienced banking and small business operator, this course is designed to give delegates a comprehensive overview of how to build a successful SME banking strategy and how to raise the performance of their institution. It applies to banks in developed and emerging markets.

The course will train how to use the planning process to set goals, to control costs and to increase the profitability of clients. The course focuses on the needs of SME customers, defines their product requirements and discusses efficient client relationship management. In addition, it trains on successful sales channel management, cross selling approaches and the introduction of new products and service.

The concept of risk adjusted pricing and minimum pricing based on the usage of standard risk costs, economic capital, RAROC and EVA will be discussed in case studies and workshops. The course will give hands-on examples of how to create value by implementing efficient credit decisions and creating up to date rating and scoring systems. Through examples the program shows how qualitative and quantitative ratios are applied to examine the creditworthiness of clients and transactions.

Finally, participants will assess the main risk factors in SME banking; they will learn how to mitigate these risk factors and to use an effective portfolio management.

Objectives

A comprehensive 5 day strategic management course for banking experts that will help you to:

• Implement a successful SME strategy
• Build an SME focused sales force and increase the cross- selling rate
• Introduce innovative products and “product bundles”
• Calculate risk adjusted pricing
• Apply standard risk cost, RAROC , economic capital and EVA
• Apply modern credit scoring systems
• Improve the credit decision process
• Implement an effective risk limit system

Content Highlights

Upon the completion of this course, the participant will understand:

• Strategies in corporate banking
• The importance of the planning process for SME banking
• How to building an efficient SME sales network
• Effective client management
• Building a competitive product range
• Measuring product and client profitability in SME banking
• Mastering credit risk in SME banking
• A streamlined credit decision process for SME customers
• Operational risk in SME banking
• An introduction to portfolio management
• How to develop an action plan for your bank or area of responsibilities
• Analyzing Small Business Financials
• Industry and Business Specific Risks

Target Audience

• General Managers and regional managers; Heads of regional businesses and branches; Managers in branches responsible for SME banking; Experts responsible for sales and distribution; Managers from credit departments and risk management; Experts responsible for corporate strategy and planning; Banking and strategy consultants; Human resources and training staff

Course Structure

• This practical course relies on a variety of training approaches to transfer skills back to the workplace. You’ll have the opportunity to experience different ways to develop and position your bank in this niche banking segment, uncover your client’s true.