intelligent

Seamless integration with nonfinance platforms

Embedded finance , the integration of financial services products directly into a business ’ products or services , also unlocks new potential for SME banking . It empowers banks with data-driven insights so that they have all the relevant information when it comes to business processes , such as risk assessments for lending and even invoice finance .

Currently , getting invoice financing as an SME can be stressful , with hours spent filling out forms and deciphering costs and fees when they could not get approval – a less than ideal situation for an SME that ’ s facing cash flow challenges . By being able to access invoice financing through a digital platform using embedded finance , it means that SMEs can get an almost instant response on whether they are approved for financing . It also gives lenders sight of an SME ’ s finances , with accurate data so it can provide accurate financing personalised to the specific SME .

What lies ahead for digital banking with a focus on SMEs ?

The rise of digital technology is transforming SME banking , with personalised platforms and solutions leading the way in how banks can take a customer-centric approach . Looking at the year ahead , regulatory changes , such as the implementation of the EU ’ s General Data Protection Regulation ( GDPR ) and the Payment Services Directive ( PSD2 ), are also driving change in the sector . These regulations are aimed at improving transparency , competition and customer protection and will impact Digital Transformation moving forwards .

Artificial Intelligence and automation are also increasingly being used in SME banking to improve efficiency and accuracy . Examples of this currently include chatbots for customer service , Machine Learning for credit scoring and robotic process automation for back office functions , but with further developments in this space we see this going even further as we move through the year .

Lastly , SMEs are increasingly focused on sustainability , and banks and financial institutions are responding by offering sustainable finance products and services . This includes financing for renewable energy projects , green bonds and sustainabilitylinked loans .

Overall , the SME banking market represents a significant opportunity for banks , FinTech companies and other financial institutions . By providing tailored solutions to meet the unique needs of SMEs , providers can tap into a significant and growing market , differentiate themselves from competitors and drive sustainable growth . At SAP Fioneer , we can empower banks and financial institutions with these technological solutions that ’ ll help them create a hyper-personalised customer experience and serve customers better , faster and at scale with our new SME banking platform . �

THE RISE OF DIGITAL TECHNOLOGY IS TRANSFORMING SME BANKING , WITH PERSONALISED PLATFORMS AND SOLUTIONS LEADING THE WAY IN HOW BANKS CAN TAKE A CUSTOMER- CENTRIC APPROACH .