Banks and service innovation: becoming more relevant to SMEs? [POLL]

July 25, 2012  |  Financial software, Payment, Research

Businesses need banks. To transfer and receive money. For extra money. For international expansion. But that doesn’t mean that every business is completely aware of the services that banks provide. That is why more and more businesses are looking for other providers to get their needs fulfilled. That is why more and providers are looking for profitable ways to compete with banks. And that is why banks are more than ever exploring how to become more relevant to their customers. A recent poll shows what US bankers see as most relevant.

Banks see increase in demand for SME specific services

Fundtech conducted a poll at their annual North American Insights client conference. Surveying 137 US banking executives from over 100 financial institutions.  In general, bankers are seeing a strong potential for the SME (small and medium enterprises) segment, with robust demand for new services especially mobile banking.

General survey findings:

  • 95% of bankers noted that the untapped potential of the SME market was equal to or greater than any other current opportunity.
  • 67% of the surveyed US bankers think that social networking has a potential role in their SME plan, though they are not yet sure how.
  • 60% of respondents said demand for new services from their SME clients was more than usual. Almost 20% said that the increased demand is “unprecedented”.
  • Almost 60% said they see some evidence of non-bank competitors taking away business from them in the SME segment.

George Ravich, Fundtech chief marketing officer, comments on these survey findings:

“The SME market offers an enormous growth opportunity to banks that understand their unique needs. For the millions of SMEs that consider their pick-up trucks as their offices, the mobile channel provides a compelling level of convenience and control. The key to success is offering this market segment well-designed options that are developed for the three major platforms-smartphone, tablet and computer.”

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