Do Banks Understand the Needs of SMEs? | Fintech Roundup by Vacuumlabs
Vacuumlabs
Product development services with a focus on fintech - encompassing strategy, design, engineering, and data science.
Hello Financial Enthusiasts,
SMEs are the backbone of our economy, yet they face numerous barriers. Let's explore how supporting SMEs can unlock potential for growth and innovation.
Imagine spending over 25 hours just to complete loan paperwork. For many SMEs, this is a frustrating reality. ??
And this is just one of the many challenges they face in the financial landscape.
?? Recent data from the UK SME Savings Tracker reveals a troubling trend: UK high street banks now offer SMEs an average interest rate of 1.45% on their savings, down 14 basis points from 1.59%.
This interest rate difference comes despite the Bank of England's base rate remaining at 5.25% for almost a year.
Meanwhile, challenger banks offer rates as high as 4.33%. SMEs with ￡75,000 in savings could miss out on nearly ￡2,160 annually.
This underscores the need for better service and transparency from traditional banks.
A few facts about SMEs and their importance:?
Understanding these challenges and opportunities is crucial for financial institutions looking to support SMEs effectively.
To help, we've prepared a detailed whitepaper that explores the critical role business banking plays in supporting Small and Medium-sized Enterprises (SMEs) across Europe and the UK.
Our goal is to highlight the specific banking needs of SMEs and provide insights into creating customized banking solutions that can boost growth across the board.
The whitepaper looks at the current situation, key players in the market, new solutions, and the potential for financial institutions to serve this vital sector better.
Globally, businesses are seeing just how important SMEs are and the opportunities they bring.?
?? Let’s take a look at the latest news:
?? XTransfer Partnered with Banking Circle to Support Chinese SMEs
?This partnership aims to reduce costs and processing times for XTransfer clients, especially Chinese suppliers with major markets in Europe and the Middle East. ?
?? Visa Launches Digital Payment Toolkit for Filipino SMEs
Toolkit will help Filipino SMEs to improve customer experiences and boost tourism sales. It includes step-by-step instructions for digital payments and guides for using contactless Visa cards. ?
?? Beobank Partnered with Viva to Support Belgium's SMEs' Digital Transformation ?
This partnership aims to speed up digital payment adoption among Belgian SMEs. It seeks to provide efficiency, cost-effectiveness, and a comprehensive business solution that supports growth for Beobank's customers. ?
?? Forwardly Introduces ‘Pay by Credit Card’ for SMEs in the USA ?
This feature offers flexibility and convenience, allowing SME businesses in the USA to accept credit card payments for invoices and pay vendors without a monthly fee. ?
??State Bank of India Launches Digital Business Loans for SMEs ?
A new SME digital business loan program uses data from income tax, GST returns, and bank statements to sanction loans in 10 seconds without any human intervention.
Client announcement ??
Did you know about our cooperation with Slido? ?
As part of Team Integrations, we're focusing our efforts on Slido integrations to other products such as Google Slides and Microsoft PowerPoint. The work includes a major redesign of all pages and implementing innovative new features.??
As an official integration partner for Cisco Systems, Inc., Vacuumlabs is delivering services to various Cisco-acquired companies like Slido.
Real-Time Transactions Are Taking Off ??
Real-time transactions are sweeping the globe, achieving stable and sustainable growth.
According to the report, over 266 billion real-time transactions were recorded worldwide in 2023.?
?? A major reason for this growth is new markets and the expansion of emerging countries like India, Brazil, Nigeria, and Indonesia.
India alone made up nearly half of all real-time transactions worldwide in 2023, with over 129 billion transactions.? ?
?? Looking forward, experts predict global real-time transactions will exceed 575 billion by 2028, growing at an annual rate of 17%. By then, real-time payments are expected to make up more than 27% of all electronic payments worldwide. ?
The surge in real-time transactions shows a clear demand for faster, more efficient payment solutions. This growth also reveals significant opportunities in emerging markets, where early entry can secure a large market share.?
Additionally, a new change in European Union payments has arrived as the new Instant Payments Regulation (IPR) comes into force.?
By 9 January 2025, all bank PSPs in the EU will be required to accept immediate payments from their customers.
Not sure what it means for you?
We can guide you through these changes and ensure you're prepared for the future of payments.?
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