Jordan Ahli BankUnlocking the SME Industry’s Powerful PotentialPresented by:Saad N. Mouasher, Senior Deputy CEO

Fact 1: The SME Credit GapSource: McKinsey & Company

Fact 2

Corporate93%

MSME7%

% of total loans

Corporate30%

MSME70%

% contribution to employment

Source: Jordan Chamber of Commerce

Fact 3

75 MILLION NEW JOBSBY 2020

Source: IMF

Silver bullet for job creation?

Job

Creation

SME

Finance

Fundamental Differences

Large Corporates SMEs

Few Many

High Complexity Low Complexity

Independent Require Support

Financials No Financials

Regulatory/Supervisory Initiatives

Financial Inclusion Regulations

Regulatory Frameworks for Alternative SME Finance Products

Credit Bureaus

Improve & Grow Payment Systems

Bankruptcy framework

Equity Investment (VC, Private Equity, Growth Funds)

Simplified Financial Reporting Standards for SMEs

Credit Guarantee Schemes

SME Finance Policy GuideSource: IFC

Jordan Ahli BankSME Value Proposition

Segmentation

SME Business Centers

!

SME Business Centers

12!

Standardized, SME Products

13

!

Standardized, SME Products

14

!

Standardized, SME Products

15!

Standardized, SME Products

• Credit Guarantee Programs: historically, most effective way to encourage SME lending in emerging economies.

• OPIC program guarantees loans of maximum JD 750,000.

• 60% Loan Guarantee for Amman based businesses, 75% Guarantee for non-Amman based businesses.

• Even startups qualify pending business plan acceptance by OPIC team.

Credit Guarantee Program

Access to Finance for Women

Female Labor Force Participation Rates

15%of SME loans go to

Female Entrepreneurs

8%

Non-Financial Services

SME Academy

20

SME Academy

SME Toolkit

22

Jordan’s Preeminent SME Portal

23

Jordan’s 1st Digital Magazine for SMEs

24

Business Support Services (Cloud)