Most of Asia Pacific witnessed a slight slowdown in SME loan growth in 2023, but the regional average increased marginally, led by Australia, while concerns remain over SME loan quality, notably in Thailand

Trade finance is gradually digitalising amid evolving e-commerce models, driven by technology and sustainability; the $2.5 trillion global trade finance gap affecting SMEs prompts innovation in blockchain, tokenisation, and sustainability, despite geopolitical complexities

The shift in global supply chains is accelerating demand for new financing programmes and solutions that aim to accelerate and improve trade digitalisation processes

Banks have not experienced a significant deterioration in asset quality of their MSME exposure, supported by various policy measures. An uptick in the non-performing small business loans is expected with the expiry of these measures.

The rapid digitalisation of MSMEs, emergence of new digital-native business models and niche segments have become a key focus area for financial technology companies to serve.