The SME space is ripe for disruption in terms of open banking services. Arguably more complex to serve, yet with the potential to yield great benefits for all concerned, the time has come for banks to step up and address the issues that their business clients grapple with, and serve them better.
Open banking is about greater competition and improved accessibility for all concerned, including lending product variation and availability for small and medium businesses.
Banks need to know who they are dealing with in order to take this leap, and they need to get a richer, more holistic view on their business customers.
For the small business, the speed at which they can apply for a loan can be a make-or-break situation, and the limited range of products available to date can leave them hamstrung at a time when having just a slightly better control on their cashflow and liquidity can make all the difference.
SMEs don’t always know when they will need finance and it can be a stressful situation to find themselves in at the eleventh hour.
Cue data, and technology. Making use of the unprecedented levels of data banks now have at their fingertips has the potential to unlock benefits within an open banking ecosystem.
Seeing everything pertaining to an account, including historical transactional data, in one place, provides lenders with assurance in order to make lending decisions, based on stronger risk profiling through data analytics. Build real-time into the equation and businesses have much greater visibility and control in order to anticipate and mitigate cashflow bottlenecks.
Join this webinar by Finextra, in association with Experian to hear experts discuss: