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// TECH TRENDS //
HOW THE RISE OF DIGITAL PLATFORMS IS MEETING
UNMET NEEDS FOR SME BANKING
Banks need to understand and meet the challenges of SMEs and ensure they ’ re being served appropriately . Thomas Becher , Head of SME Banking at SAP Fioneer , discusses how the SME banking market provides a significant opportunity for financial institutions and how bespoke digital platforms can help tap into this market .
MALL AND MEDIUM
S enterprises ( SMEs ) are considered the backbone of the economy in many countries across the world . They contribute significantly to employment , innovation and economic growth . Providing financial support to these enterprises through SME banking can help promote entrepreneurship , create jobs and aid economic development .
However , SMEs often face difficulties in accessing financing from traditional banks that meets their unique needs , as the perceived risks and costs associated can be deemed too high . By offering banking capabilities tailored to the needs of SMEs , banks can help to fill this financing gap and provide these companies with the necessary capital to grow their businesses . According to a report by McKinsey & Company , the global SME banking market is worth around US $ 350 billion in annual revenues , with significant growth potential in emerging markets .
Digital banking capabilities for SMEs : a win win for both banks and SMEs
With banking capabilities specific to SMEs , financial services organisations can offer customised products tailored to their specific needs , such as flexible loan repayment terms , lower interest rates and access to business advisory services . It gives banks the chance to build long-term relationships with SMEs by understanding their unique challenges .
For banks , having a digital offering tailored to SMEs can be profitable , diversifies their
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CASH FLOW
MANAGEMENT IS CRITICAL FOR SMES , AND BANKING SERVICES CAN HELP BUSINESSES BETTER MANAGE THIS .
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