“Crediting and opening a deposit are no longer the only services that SME customers demand from banks. Consultations, training, office space, ‘ATM car’ and even translation services are what modern banks offer their clients in response to growing demands. Another challenge for the banking sector is coming from Generation Z.
Having grown up with electronic devices, this segment requires a special approach based on modern technologies. If banks do not manage to respond to these demands rapidly, they may be left outside of the market as 72% of customers globally are willing to bank with a non-bank.”
As many of today’s financial institutions are increasing their attention on serving the needs of small and midsized enterprises, some are looking at solutions that transcend simple banking transactions to include other services important to these businesses. This is a smart approach, as these business owners are often time- and resource-constrained, and desire access to subject matter experts.
Mercator Advisory Group has also researched and written about FIs’ expanded reach to these customers and members, and has just published a new research note on this growing market. For more information on these initiatives, see the Mercator Banking Channels Research Note entitled “Tapping a Banking Market Segment with High Potential: Small and Midsized Enterprises.”
Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group
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