For a long time, banks have taken an ambivalent stance toward SMEs, but this is beginning to change. It is reported that, on average, small businesses contribute around 12% of total revenues to European banks per year – a significant income pool, which is expected to grow in the coming years. With this in mind, banks realise that if they can offer SMEs more of the services they need, they can reap the rewards.
What’s clear is that SME businesses have a large appetite for digital services. These usually tech-savvy start-ups and ventures want to be able to bank and access all manner of services online. Experts predict that 90% of the transactions by small and medium enterprises will be carried out through digital channels by 2020.
While some banks are already well on their way to meeting the needs of their SME clients, others have a great deal of progress to make.
In this Efma Digest, we highlight some of the key areas banks need to focus on if they are to win and retain business from SME clients. Split into six parts, we look at why digital is such a top priority for banks, what areas SME businesses particularly want to be digitised, and how banks can boost loyalty by offering value-added services that will help their clients navigate the hurdles associated with such starting out from scratch.
In part four we deliver the promise of the publication’s title, and identify five ways that banks can get the most from their SME business. This is backed up with in-practice examples from some of the most pioneering financial services organisations operating in the SME market today.
This is followed by a look at how things are expected to evolve in the future. What will be the role of physical branches? And how will new players impact the market? Drawing insight from leading research, we answer these questions and more.
Keywords : SME , Bank Products & Services , Omnichannel