Governments and banks have been arguing for years on SMEs financing. SMEs in Europe are at the heart of the economy and are mainly financed by banks. The numerous regulatory measures taken in the last years have deeply impacted financing, in general, and, SME in particular.
Given the SMEs needs, some alternative sources of financing are newly emerging such as the Euro PP, a renewed interest for securitization, the creation of specific UCITS towards insurers and the recent crowdfunding mechanisms. Their variety and specific set ups call for tailored risks approaches and market conditions to assure growth. Nonetheless, their market shares will increase slowly over time, substituting only a part of the bank financing.
These alternative financing vehicles imply strong changes inside the bank retail networks and within the asset management arm of the insurers.