Sterling Bank and the Small and Medium Enterprises Development Agency of Nigeria have developed Databanc, a website that provides data on Nigerian businesses as well as a single-digit loan scheme worth N5 billion.
This disclosure was made in a statement by the bank on Wednesday stating that Databank delivers insights that will be used by SMEDAN to deliver on its policy formulation mandate, as well as a unique identification for small firms and their promoters, according to The Punch.
In his comments at the launching of the platform, the Executive Director of Commercial and Institutional Banking at Sterling Bank, Tunde Adeola described the platform and fund as proof of Sterling Bank’s commitment to expanding the real sector of the economy.
Adeola said, “We are delighted to bolster the backbone of our economy with SMEDAN. This initial fund of N5bn marks just the beginning of what has been and will continue to be a mainstay of our approach to funding businesses to grow at scale, and become the preferred financial partner for businesses, no matter their scale.”
He also stated that over 20,000 SMEs had enlisted on the Databanc platform, with over 80 recipients of the single-digit loan program and additional payments underway.
He encouraged all MSMEs in the country to register with the platform.
Meanwhile, SMEDAN’s Director-General, Mr. Charles Odii, represented by the Director of Agribusiness Development and Access to Finance, Levi Anyikwa emphasised the program’s alignment with SMEDAN’s aim of democratising loan access for nano and micro-enterprises.
Anyikwa reiterated that access to finance remained a significant obstacle for SMEs, and reiterated SMEDAN’s commitment to remove it.
The Head of SME Digital Products at Sterling Bank, Bolanle Tyson underlined Sterling Bank’s strategic focus on essential sectors, as reflected in the HEART of Sterling forward strategy: health, education, agriculture, renewable energy, and transportation.
She said, “We are leveraging data to empower SMEs like never before. Our commitment to SMEs is steadfast. We recognise their pivotal role in driving Nigeria’s GDP and employment. This partnership with SMEDAN underscores our shared dedication to their success.”
The difficulties faced by SMEs in Nigeria cannot be overemphasised. According to Visa’s most recent study, the SME Megatrends report, SMEs in Nigeria continue to be heavily underserved and underbanked, with a significant number of SMEs relying on personal loans and informal credit due to obstacles and requirements that make it difficult to secure loans from banks and other formal lenders.
