In today’s Executive Lounge, Mastercard’s Shamina Singh discusses their innovative strategies tackling the global challenge of small businesses stuck in the “missing middle.”
The dilemma faced by small and medium-sized enterprises (SMEs), often too small for traditional bank loans yet too large for microfinance, is a critical issue globally. According to the World Economic Forum, 67% of SMEs worldwide struggle to survive due to this financial services gap.
Despite efforts from international financial institutions like the World Bank, bridging this funding gap has seen mixed success. Mastercard, however, has stepped forward uniquely positioned to address this challenge. Contrary to common perception, Mastercard focuses not just on credit cards but primarily on payment processing while prioritizing financial inclusion.
Shamina Singh, Executive Vice President of Sustainability at Mastercard, emphasizes the company’s commitment to leveraging digital solutions for financial inclusion. She highlights Mastercard’s Inclusive Growth Score, a tool enabling local financial institutions to assess community economic indicators and predict SME viability accurately.
Singh elaborates on Mastercard’s Strive program, tailored to empower SMEs in transitioning to the digital economy post-Covid-19. This initiative supports businesses worldwide, from Sparkle Lighting in the UK to Kelsie Kay’s Coffee Depot in South Dakota’s Native American reservation.
“When we launched Strive in 2021, the financing gap for small businesses in low and lower-middle-income countries was staggering,” Singh explains. “Our goal is to empower SMEs by providing digital tools, access to capital, and necessary networks.”
Mastercard’s approach integrates extensive market analysis before each Strive program launch, ensuring tailored solutions to local SME challenges. Singh emphasizes the role of data in program effectiveness, enabling continuous improvement based on real-time insights.
As the digital economy expands, Mastercard remains committed to closing the “missing middle” gap, ensuring small businesses globally can thrive and contribute to economic resilience and growth.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
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