Non-financial Services: The Key to Unlocking the Growth Potential of Women-led Small and Medium Enterprises for Banks

This study examines the benefits to banks of integrating non-financial services (NFS) that can help mitigate these barriers into a women-focused SME banking proposition. Analysis of five SME banking models, in addition to previously published case studies and other resources, found that well-integrated NFS offers for WSMEs yield positive return on investment (ROI) within one to two years. This is  demonstrated through four key metrics:  increased interest income; share of wallet, which includes cross-sell, deposit volume and fee income, including fees charged for NFS  participation; loyalty; and reduced risk.While increased interest income is often the largest contributor to ROI, particularly in the first one to two years, each of the four  components mentioned above has been  individually found to cover NFS costs. This  signals an opportunity for banks to ensure their full product suite, along with communication and delivery, is tailored to WSMEs, as this can pave the way for the segment to take full advantage of the bank’s offers.