- Title
- A service delivery framework to unlock the revenue potential of the SME segments of commercercial banks in South Africa
- Creator
- Mahlati, Mphenduli Mncedi
- Subject
- Small business -- Finance
- Subject
- Financial services industry -- Information technology Banks and banking Technological innovations
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MBA
- Identifier
- http://hdl.handle.net/10948/31633
- Identifier
- vital:31639
- Description
- Small and Medium sized Enterprises (SMEs) are a vital driver to the world economy. They provide more than 60% of overall employment globally and approximately 80% of jobs in developed economies. This segment however remains underserved by banks who have struggled to serve SMEs effectively. Nevertheless banks are still perfectly placed to capture the needs of SME customers and to provide them with greater value adding services that address their needs. However, this must be done in a cost-effective manner to ensure long-term portfolio and banking profitability. SME Banking faces several challenges centred on the high cost to serve and profitability. For the banking sector to overcome these challenges and still meet increasing and changing customer needs, significant investment in digital technology is required. The literature reviewed identified that in order to unlock the revenue potential embedded within the SME segment; banks need ground-breaking solutions to solve their revenue and profitability conundrum. This study mentions that such solutions will need to be focused around placing banks as market enablers, by way of providing SMEs with a growth platform and not just financial transaction services. The study also identified a hybrid service delivery model and a digital ecosystem approach to SME banking as being pivotal to unlocking the revenue potential embedded within the segment. Through a digital ecosystem approach, banks can leverage their intra and inter banking network to assist SMEs to grow their businesses. In the process, this will serve as a way of increasing penetration into this underserved segment. In addition, such an approach to banking necessitates an acceptance of how interconnected business relationships have the capacity to enable business growth and subsequently to address SME banking risk. To also consider that banks in South Africa continue to view SMEs as being too risky and costly to serve. This study attempts to address this perceived riskiness by presenting a service delivery framework, which consists of key factors that would influence the revenue potential of the SME segments of Commercial Banks in South Africa. The empirical part of the research evaluated banking official’s awareness and understanding of key concepts that is likely to influence their views with regards to the revenue potential of the SME market.
- Format
- ix, 137 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economics Sciences
- Language
- English
- Rights
- Nelson Mandela University
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Mphenduli Mncedi Mahlati.pdf | 2 MB | Adobe Acrobat PDF | View Details Download |