As part of the NIIC 2 programme, One to Watch and the Nepal Bankers' Institute (NBI) held a focus group discussion with banking professionals on 8 April 2026 in Kathmandu. The session brought together participants from commercial banks, development banks, and finance companies to discuss the challenges of lending to technology businesses in Nepal.

This was the second in a series of structured discussions being conducted under NIIC 2 to better understand the barriers that tech companies face when accessing formal finance. The findings will inform ongoing work with the banking sector to develop more appropriate financing approaches for this segment.

Participants discussed how existing lending products, largely designed around physical assets and inventory cycles, do not translate well to tech businesses, which tend to be driven by contracts, human capital, and service-based revenues. The discussion also covered related issues including risk assessment, loan monitoring, valuation of intangible assets, and gaps in the current regulatory framework.

The session was constructive, with participants also identifying potential approaches such as contract-linked financing and cash flow-based assessment as more suitable alternatives. The findings from this discussion are being documented and will contribute to the broader research and capacity-building work being carried out under NIIC 2.