To fend off the rise of digital attackers, banks must serve MSMEs better with a model that effectively blends the best of digital and AI with the personal touch of an advisor.

Micro-, small, and medium-size enterprises (MSMEs) are the backbone of the global economy, accounting for more than half of global GDP, over 90 percent of all companies, and more than two-thirds of business employment. For banks, MSMEs represent a growth opportunity: This segment accounts for 21 percent of total banking revenue pools, and banking revenue from MSMEs is growing 7 percent a year, faster than retail or corporate banking (Exhibit 1). Click here to read the full text article