SME Banking: new AME Info column

Only a few years ago many major regional banks chose to ignore the needs of small and medium sized business and concentrated the efforts in retail banking and serving the larger family groups and multi-national corporations.

However, as the regional economy has boomed in recent years on the back of high oil prices, so banks have begun to address the specific needs of their SME customers.

Instead of handling them as a 'credit risk' banks increasingly see smaller businesses as an opportunity. After all 35 years ago many of the giant family concerns of the UAE, for example, were struggling start-ups cashing in on an oil boom.

Against this background it makes sense to dedicate a regular column on AME Info to this banking segment. The needs of SMEs are different, whether in start-up mode or existing SMEs which require expansion capital and solid business advice.

SME banking solutions

This column will interview some of the key participants in this area of banking and more importantly profile some of their customers and explain how banking can work for the SME.

Solutions range from the most complex private equity venture capital deals and government incentives for small business to straightforward matters like cash management.

For some SMEs this is simply a matter of a few tips on how to manage what they already do slightly better. But for others sound banking could be the difference between success and failure.

These will not be lengthy items. AME Info likes to keep articles short and to the point. Time is money for any business, and information should be presented in a neat and easily digested format.

AME Info welcomes HSBC as the sponsor of this column and will draw fully on the information and human resources of one of the world's largest financial institutions which has itself been rediscovering the importance of SME customers around the world.