Expression of Interest For Sme Access To Finance Assessment For The Philippines

Expression of Interest for SME Access to Finance Assessment for the Philippines Micro, small, and medium enterprises (MSMEs) play a critical role in the Philippine economy, accounting for over 99% of firms, approximately 40% of GDP, and 67% of employment. Despite their economic significance, access to finance for MSMEs remains severely constrained. According to the Bangko Sentral ng Pilipinas (BSP), only about 4.5% of total bank lending is directed to MSMEs, well below the 10% minimum mandated under the Magna Carta for MSMEs. The MSME financing demand, estimated by Visa International, is at approx. USD 220 billion, with only USD 15 billion in supply. Structural factors contributing to this gap include limited adoption of digital credit instruments beyond mobile wallets, persistent weaknesses in credit information infrastructure, reluctance of traditional financial institutions to lend due to perceived risk and lack of collateral, and weak supervision of nonbank financial institutions (NBFIs). While the Government of the Philippines has launched initiatives such as the National Financial Inclusion Strategy (NFIS), most interventions to date have focused on digital payments and nonfinancial services, with limited direct impact on MSME access to credit. The International Finance Corporation (IFC), intends to engage a qualified consulting firm to carry out a series of interlinked assessments. These assessments will be anchored by an MSME market diagnostic and will inform reforms, investments, and demonstration models to strengthen MSME access to finance. 2. Objectives of the assignment The objective of the assignment is to carry out four complementary diagnostics to identify implementable, privatesectorled solutions and relevant regulatory considerations to address MSME accesstofinance gaps in the Philippines. The diagnostics are intended to inform IFC engagement with BSP, SEC, and market participants, and to support prioritization of IFC advisory and investment activities. 3. Proposed scope of work The consulting firm will be expected to undertake the following four workstreams: a. MSME Market Diagnostics Assess MSME financing needs across key sectors, firm sizes, and regions. Identify MSME subsectors that are relatively wellbanked versus underserved. Apply an economic and jobs lens to support prioritization of MSME segments relevant for IFC engagement, particularly for FIG IS and AS teams. b. Digital Receivables Financing Platforms Assessment Assess the potential of digital receivables financing platforms to expand access to finance for formal MSMEs operating within the supply chains of larger Filipino companies. Draw on international experience (e.g., Mexicos eFactor Network, Indias TReDS) to assess the applicability of similar models in the Philippine context. Identify market, legal, and regulatory considerations relevant to the adoption and scaling of such platforms. c. Credit Information Ecosystem Assessment Evaluate gaps in the Philippine credit information ecosystem, including the functioning and effectiveness of the Credit Information Corporation (CIC). Assess data coverage, interoperability between public and private credit bureaus, and institutional coordination across BSP and SECregulated entities. Examine the relevance of the current credit information framework for emerging lending models, including buynowpaylater (BNPL) and embedded finance. d. NBFI Supervisory Practice Note Take stock of the existing regulatory and supervisory framework applicable to nonbank financial institutions (NBFIs) in the Philippines. Compile and summarize international good practices in NBFI prudential supervision and capital adequacy, including proportional and riskbased approaches. 4. Submission of expressions of interest IFC invites Expressions of Interest from consulting firms with demonstrated experience in the following areas: MSME finance and market diagnostics; Financial sector regulation and supervision; Credit information systems and financial infrastructure; Digital finance, supplychain finance, or fintech ecosystems; Comparative analysis of international regulatory and supervisory practices. Experience working with financial sector regulators in the Philippines will be an advantage. Interested firms are invited to submit an Expression of Interest outlining: The firms relevant experience and qualifications; Examples of similar assignments undertaken; and A brief description of the firms capacity to deliver the scope of work. Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/6730/view.html

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