geo/laos
Washington, D.C., January 6, 2020 – Phongsavanh Bank became the newest member of the SME Finance Forum, a global membership network that brings together financial institutions, technology companies, and development finance institutions to share knowledge, spur innovation, and promote the growth of SMEs.
While other countries have developed extensive agent networks, and complex partnerships to support DFS ecosystems - Lao PDR remains a greenfield and untouched environment for digital financial services. No agents, no services and no customers using DFS in the country of 6.8 million people.
This multimedia case study is intended to showcase the journey to develop branchless banking in an environment with no previous regulatory framework or tested business models.
IFC, a member of the World Bank Group is increasing access to SME finance in Lao PDR by fostering a business enabling environment and developing market solutions for serving SMEs.
According to the release, SMEs make up 99 percent of total enterprises and over 80 percent of the workforce, however they are confronted with a financing gap of $1.2 billion.
Phongsavanh Bank (PSVB) is the first locally owned private bank in Lao PDR. It focuses on developing SMEs by increasing access to finance in Lao Kip, Thai Baht and US Dollar.
IFC, a member of the World Bank Group, is helping improve access to finance for Lao micro, small and medium businesses by assisting the Ministry of Finance in introducing “movable-asset” financing in the country.
IFC, a member of the World Bank Group, helps widen access to finance for Lao PDR’s many micro, small and medium enterprises by supporting the Ministry of Finance in the development of an online secured transaction registry that is launched today.
