Empowering Banks and SMBs: The Power of Actionable Cashflow Insights

Small and Medium-sized Businesses (SMBs) represent a significant growth opportunity for banks, and to sustain success, banks must cater to their unique needs in order to remain competitive. However, the relationship between banks and SMBs can be challenging to navigate. One key to enhancing this relationship and driving mutual success is equipping both SMB customers and bank relationship managers with actionable cashflow insights.

Predicting cashflow and cashflow exceptions

Cashflow is the lifeblood of any business, and for SMBs, it’s especially crucial. Predicting cashflow accuracy can mean the difference between thriving and struggling. Actionable cashflow insights leverage advanced analytics and AI to provide SMBs with a clear view of their financial future.

• Proactive Planning: By analyzing historical data and market trends, banks can offer SMBs a forecast of their future cashflow. This empowers SMBs to plan ahead, seize opportunities, and navigate challenges with confidence.
• Cashflow Exceptions: Actionable insights also enable the detection of cashflow exceptions. Whether it’s an unexpected expense or a delay in receivables, banks can alert SMBs to potential issues before they become crises, allowing for timely adjustments.

Empowering Relationship Managers with ranked leads and recommendations

For banks, relationship managers are the bridge between the institution and its SMB clients. Empowering these managers with actionable cashflow insights can significantly boost their effectiveness.

• Ranked leads: With insights that prioritize leads based on their potential, relationship managers can focus their efforts on the most promising SMB clients. This targeted approach streamlines the cross-selling and upselling process.
• Recommendations: Actionable insights provide relationship managers with personalized product and service recommendations for each SMB client. This ensures that offerings are tailored to the unique needs and goals of each business, improving the likelihood of successful cross-sell and upsell efforts.
• Alerts and business explainability: Insights also come with alerts. If a particular SMB client is facing a financial challenge, relationship managers are promptly alerted. Furthermore, the insights provide explainability, helping managers understand why a recommendation is being made. This transparency fosters trust between the bank and the SMB.

Reducing loan defaults

Loan defaults are detrimental to both banks and SMBs. Actionable cashflow insights play a critical role in risk management.

• Risk assessment: By continuously monitoring cashflow and financial health, banks can assess the risk associated with each SMB client. This data-driven approach helps banks make informed decisions regarding loans and credit extensions.
• Early warning systems: Insights can function as early warning systems. If an SMB’s cashflow indicates financial distress, the bank can intervene early, offering support and alternative solutions to prevent default.
• Customized loan structures: Actionable insights enable banks to offer customized loan structures. Instead of one-size-fits-all loans, banks can tailor repayment schedules and terms based on an SMB’s cashflow patterns, reducing the risk of default.

Summary

Actionable cashflow insights are a game-changer for both banks and SMBs. By predicting cashflow, empowering relationship managers with ranked leads and recommendations, and reducing loan defaults, banks can strengthen their relationships with SMB clients. This not only drives business growth for SMBs but also enhances the bank’s profitability and customer satisfaction. It’s a win-win scenario that demonstrates the transformative potential of actionable insights in the world of SMB banking.