In the post-global financial crisis era, governments the world over are battling to get more bank financing to small and medium-sized enterprises (SMEs), which today are widely recognized as crucial drivers of growth and employment across economies.

Often, especially during times of financial stress, SMEs find credit in short supply, as lenders judge them too risky to transact with. Consequently, these dynamic companies may struggle to fulfill their full potential as engines of economic development and job creation.

Unlike large companies, which can access capital markets or use cash flow to make large investments, SMEs rely heavily on bank finance to fund growth, but often lack the robust track records they need to borrow at affordable rates.

A benign regulatory environment and availability of facilities such as positive credit reference agencies are of great help: governments have a clear role in creating the economic conditions and financial infrastructure that allow SMEs to thrive. In hard times, government invention, in the form of credit guarantee or underwriting schemes, has proven successful in maintaining credit flow to many SMEs in Asia.

Throughout the banking industry, there is growing recognition that lending to SMEs is a crucial way for financial institutions to contribute to the real economy.

It's not all about loans, however. From our work with hundreds of thousands of SMEs across Asia, Africa and the Middle East, we have found that, just like large companies, SMEs including their owners and directors require a full range of banking products and services to meet their needs. These may include help to manage payments and cash flow more efficiently, maximizing returns on spare capital or protecting the business from various forms of risks. But banks have not served well these SMEs' needs.

In other words, to run successful businesses, SMEs require banks that will provide them with everything from payroll, payment collection, current accounts and debit cards to cross-border banking, investments, foreign exchange and derivatives.

In the past, banks tended to offer the same products and services to SMEs, whether they were dealing with small businesses or medium-sized enterprises. However, there is now greater understanding that the requirements of the two segments are very different, with medium-sized enterprises typically having a greater need for customized solutions going beyond basic banking. Small businesses, on the other hand, often lack the capability to address issues such as tax and legal aspects. Banks can help, by partnering with experts to offer them the advice they need.