Small & Medium Enterprises are vital to every economy, but are banks truly meeting their needs?

Small and Medium Enterprises (SMEs) are the backbone of the economy, driving innovation, job creation, and growth. In the EU, their impact is staggering: SMEs make up 99.8% of all non-financial enterprises, employ nearly 89 million people, and contribute significantly to total employment.

?But despite their importance, are banks truly addressing the unique needs of these vital businesses? In this edition, we’ll explore the challenges SMEs face, the opportunities for banks to better serve them, and how innovative digital banking solutions can bridge the gap.

?Do all SME clients of a bank have the same needs?

Absolutely not!

What are the key Pain Points for Traditional Banks:

• Outdated legacy IT systems make it difficult to adapt quickly.
• No dedicated digital banking for SME clients (Either Retail & Corporate)
• Separate Applications for different Customer Segments
• Lack of?digital expertise and resources needed for modernization.

Not all SMEs are the same. A taxi driver, a coffee shop, and a tech startup have vastly different needs.

That’s why a one-size-fits-all approach doesn’t work!

We see difference in:

• Micro Enterprises (local shops, hospitality, food services).
• Small Enterprises (agencies, legal services, manufacturers).
• Medium Enterprises (logistics, transport, large retailers).

Trusted Business Partner

It’s not just about daily banking – it’s about becoming a trusted business partner. SMEs need a bank that grows with them, offering value beyond accounts and loans, and actionable business insights, such as:

• Smart tools like invoicing, expense management, and cash flow planning.

• Notifications for low balances or risks, recurring payment tracking, and financial forecasting.
• A seamless, personalized experience across all banking services.

Bigger value then just “transactional banking”

For SMEs, the right banking partner can make all the difference. Beyond traditional services, banks can create meaningful value by offering tailored, user-friendly solutions that address their unique needs and challenges.?

Value to SMEs:

• A Personalized App Experience: Intuitive and easy-to-navigate features built around their business requirements and budget, providing a seamless banking journey.
• Proactive Insights: Real-time data on cash flow, expenses, and revenue trends, empowering better decision-making.
• Smart Financial Tools: Advanced invoicing, automated expense tracking, and cash flow planning to simplify daily operations.
• Time and Cost Efficiency: Solutions like digital onboarding, quick access to loans, and flexible payment options save SMEs time and reduce operational costs.

Smarter, unique?SME banking experience:

• Customer Segmentation: Different UI/UX and functionalities tailored to SME needs.
• Digital Banking Score (DBS): Individual scores built from data on digital channels and client interactions.
• Centralized Management: Delivering a consistent, unique experience across all digital touchpoints.
• Real-Time Personalization: Instantly adapting customer segments and offerings to meet changing needs.

The FINTENSE Digital Banking Platform.

FINTENSE transforms SME banking by delivering a unique digital experience, automation and value added services tailored to each client’s needs.

To stay ahead in the evolving financial landscape, banks must leverage the power of AI and big data to enhance decision-making, streamline workflows, and deliver highly tailored experiences. The future lies in invisible banking—seamlessly integrating financial services into everyday life.

Our FINTENSE platform, a ready-made cloud-based digital banking solution, ensures rapid time-to-market and scalability by leveraging the latest technology trends. We’re thrilled to be a Finovate 2024 finalist in the Best Customer Experience Solution category.

If you would like to learn more on how we deliver our Digital Banking platform FINTENSE, please, click the link?to schedule a meeting so we can explore the topic further.