Optimising SME lending processes and developing a new SME lending strategy in Tajikistan
In 2019, one of Tajikistan’s leading microfinance organisations, LLC MDO Arvand, merged with a MSME-focused commercial bank, CJSC AccessBank Tajikistan. This merger of two financial institutions with extensive experience in working with MSMEs required an assessment of existing operational methods at both institutions as a basis for identifying the best approach for the post-merger institution. IPC was contracted to assist with this activity.
The new bank sought to define day-to-day processes and long-term strategic objectives regarding SME lending. Additionally, and of equal importance, IPC consultants provided support to Arvand’s executive management in defining long-term objectives regarding SME lending and in adjusting the new bank’s organisational structure.
To facilitate this, IPC experts implemented the following tasks:
- conducted a review and analysis of SME lending and monitoring procedures, loan application assessment tools, and the loan decision making approach of Arvand and AccessBank by reviewing internal documents governing these processes and approaches
- developed new optimised processes and tools for SME lending
- drafted a proposal on a new organisational structure and functions of the bank in line with best practices
- compiled an evaluation report, including a high-level SME lending process map, a matrix of methodological documents
- conducted a review and analysis of the current SME lending strategy
- provided recommendations on the existing strategy and supported the development of a strategic development plan, including cross selling opportunities
- conducted a strategic management workshop to present and discuss findings regarding a future SME lending strategy