Medium sized companies need financial digitization from the banks in order to reach better services. Innovative financial services such as automated credit processes or investment advice, are already being used in a wide variety for private customers, but not for companies.
The services we have today are not fully automated
The range of offers are expanding in the corporate customer area, but its diversity still seems to be significantly lower than that of retail banking, says the “Innovative Financial Services for SMEs” report by ibi Research. The report shows an initial overview of current and future status of innovative financial services for medium-sized businesses.
Although there are already a large number of digital services available today, these are usually not completely automated. There is a lack of solutions for small and medium-sized companies in particular for loans and account connections. Ând what we need is not just new and automated products, but also need continuous automation and simplified versions of the existing services.
Medium sized businesses need new products based on financial digitization from the banks
Companies expect digitized processes for financing especially for traditional solutions and classic products. Although the banks and financial service providers already offer partially digitized financial products for small and medium-sized businesses, there is still significant potential to improve.
With classic credits, 70% of the companies think that it cannot be run completely digital, 70% of the companies surveyed say that credit checks cannot be carried out online. The companies have a positive attitude towards financing platforms. 55% of medium-sized companies attest the platforms have a significant added value in terms of information content. Process security in transactions is also rated positively with 60% approval.
The medium-sized companies can access a wide range of specific financial products. But not all meet the individual and digital requirements of the companies. Financial service providers need to focus more on new and digital financial products and processes as quickly as possible. The existing product range should also be fully digitized in order to compete with fintechs and bigtechs in corporate customer business in the future.