When it comes to global trade, traditionally much of the focus of banks has been on supporting multinationals and large corporates. But by overlooking the needs of midsize companies, banks could be missing a serious trick.

It is hard to overstate the importance of midsize companies for growth and job creation. In Asia, Africa and the Middle East, companies up to this stage of development account for between 40 and 60 percent of GDP.

In the last couple of decades, as global trade has evolved, midsize corporates have also come to play a much more important role in supply chains. Whereas in the past, they would have focused on domestic markets, these days many such firms are fully active in overseas trade as suppliers and distributors.

This is especially true for emerging markets, where trade is growing more rapidly than in the West. The world’s fastest-growing trade corridors are “South-South” ― such as trade between Asia and the Middle East, Latin America and Asia, and Asia and Africa.

Examples abound of midsize companies from these regions hitting the big league. Take India’s Greenply Industries, now exporting laminates to upward of 70 countries, with subsidiaries in Singapore, Indonesia, Thailand, Europe and the U.S.

Another great example is Singapore’s Kheng Keng Auto, which has expanded from a five-man family business to one of the country’s most active used-car importer-exporter, with business dealings in over 50 countries worldwide ― including a strong presence in Africa.

Today, by the time a company reaches the midsize bracket, it is likely to be well underway to internationalizing, looking for opportunities and support to further innovate and push into new markets. This is a crucial stage in the corporate lifecycle, and one which can make or break a company’s future.

Unfortunately, this is also the time when midsize corporates tend to hit something of a confused space in the banking industry ― too big and complex to be served alongside small and medium enterprises, and too small to be fully on the radar of wholesale bankers.

Most financial institutions cater to midsize corporates, but the definitions of midsize vary dramatically, and services are often fragmented by geography, whilst what these clients really need is the full complement of international banking services.

Many have the same banking needs as large companies ― such as cross-border payment collection or help to access capital markets for funding. Indeed, in a number of markets in Asia, including Hong Kong and Singapore, more companies are now issuing debt or equity well before they hit the “large corporate” banking bracket.

Most midsize corporates already use basic cash management services, but ― as they internationalize ― many need advice on how to manage their cross-border cash flow, or how to use more advanced treasury products, such as commodity or financial derivatives, to help manage their risk.

Increasingly, midsize corporates also require advice from banks as to where and how they can they tap opportunities on offer outside of their home markets. Many are willing to look far afield ― for example midsize Chinese firms looking to sell their products in Sub-Saharan Africa, or vice versa.

This represents a massive opportunity for banks to build a larger business with midsize companies beyond simple credit and banking products. But, until now, the industry has not quite kept pace with this shift in demand.

Traditionally, midsize corporates have posed something of a challenge for banks. Though they have made it past the volatile startup phase, these companies are still inherently riskier to serve than large corporates: Their cash flow is less stable, because they depend on fewer clients, and ― because of their smaller balance sheets ― they are unable to absorb the same fluctuations as large companies. This makes them more vulnerable to defaulting on their loans, and more price-sensitive.

However, by seizing on internationalization to serve midsize corporates in multiple markets with multiple products and services, banks can create a more stable and profitable income from these clients.

By doing more business with midsize corporates, banks will be supporting a sector that is increasingly vital to economies around the world, but the rationale is not merely an altruistic one.

By Andrew Bainbridge, Global Head of Commercial Clients at Standard Chartered