Ifc-combank digital marketplace to help expand reach of SMES
„LEAP platform to help biz owners connect with more customers locally and abroad
In an effort to expand the reach of the small and medium enterprises (SMES), including the women-owned small businesses, the International Finance Corporation (IFC) announced its support to Commercial Bank of Ceylon to launch a digital marketplace in Sri Lanka.
The platform will help business owners connect with more customers locally and abroad.
Named Commercial Bank LEAP, this one-of-its-kind initiative is supported under the Women in Work partnership between the IFC and Government of Australia.
It will open new market opportunities and build business connections for all SMES, including the women-owned SMES, corporate and businesses, creating an international marketplace to buy and sell products and raw materials.
The platform will also assist businesses to digitise their core banking activities, provide business intelligence and will feature multiple sales channels. It will also provide access to Commercial Bank’s banking services, including loan products, non-financial services and insurance.
“Building digital experiences around customers’ journeys is an ideal fit for the bank, considering our committed focus on digitising the banking landscape in Sri Lanka. We believe this will address the need gaps of enterprises, including women-led businesses and allow them to reach cross-border levels in the global marketplace,” said Commercial Bank MD/CEO Sanath Manatunge.
A quarter of all SMES in Sri Lanka are owned or managed by women. Overall, the SMES account for around 45 percent of Sri Lanka’s formal employment. But the research shows that lack of access to finance and business know-how holds many businesses in Sri Lanka, specifically women-owned, back from expanding their businesses beyond their informal micro-scale enterprises.
“Sri Lanka’s macroeconomic crisis has had a negative and disproportionate impact on small businesses, particularly those owned by women, in their access to a wide range of customers and export revenue,” said IFC Regional Portfolio Manager Financial Institutions Group for South Asia Joon Young Park.
He added that Commercial Bank LEAP is a timely and innovative initiative, offering a real avenue for small business owners to connect on a digital platform, access new financial products and grow their businesses, to help them not only survive but thrive, which would also positively impact the growth of Sri Lanka.
Widespread differences between men and women in digital and financial inclusion continue to hold back women entrepreneurs. In 2020, an IFC study assessing over 400 SMES highlighted the significant gaps in Sri Lanka in terms of the uptake of digital business channels, with only a quarter of women-owned businesses trying a new digital channel, compared to one-third of male-owned.