Small and medium enterprises (SMEs) are the backbone of emerging economies, but struggle to access sufficient finance. Commercial banks can unlock a US$5.7trn market by targeting this underserved market. INVEST: The Process & Toolkit supports banks and funders to understand the SME market and meet this demand.

The business case to do is clear. With proper segmentation and business support, SMEs repay as reliably as other segments. They often pay higher interest rates than large corporates, and offer strong cross-sell potential. And when supplied with tailored products, and non-financial support, SMEs often become long-term customers.

There is also a compelling impact case.

• When SMEs grow, they increase employment and economic opportunities: In low- and middle-income countries, high-growth SMEs can contribute up to 40% of GDP.
• With women owning 37% of SMEs, expanding access to SME finance improves gender equality, and fuels broader impact, as these women reinvest nearly 90% of their income into education, health, and community well-being.
• Because SMEs are more geographically dispersed than large firms, they extend economic opportunity and jobs to secondary towns and underserved regions.

The INVEST process starts with a research and diagnostics phase to understand SME needs and identify how to scale profitable SME lending. The pilot and refinement phase is essential for testing and adapting SME banking models to ensure that they are effective and scalable. The rollout phase focuses on scaling what works and institutionalizing SME banking for long-term success

The INVEST toolkit – a mix of Excel models and frameworks, Tableau dashboards and conceptual overviews – supports banks and funders throughout the process.

INVEST is a freely available set of resources, based on lessons from more than 20 SME banking programmes worldwide. The approach has already informed programmes across Africa, Asia, and Latin America, mobilising billions of dollars in SME finance.

Developed by Dalberg, ConsumerCentriX, and the Argidius Foundation, with the SME Finance Forum as an implementing partner, it equips funders and banks to make better-informed decisions, deploy technical assistance more strategically, and build profitable, inclusive SME portfolios.

Check out INVEST: The Process & Toolkit at smebankingtoolkit.com.