New research from payments and finance platform Airwallex shows that four in five SMEs are looking to switch from traditional banks for their payment needs, with many preferring cloud-based financial services.
The desire for a shift comes as 82% of SMEs globally (more in the UK and US) feel “overlooked” by their existing conventional banks.
With more interest in the unconventional, Airwallex says this could be the time for other marketplaces like e-commerce, CRM and expense management platforms to grab a piece of the pie.
Banks are abandoning SMEs, the report says
Longer processing and settlement times and high transaction costs were problematic for 45% and 41% of companies surveyed respectively, suggesting that conventional banks may not be able to provide what cross-border and multinational SMEs need, or at least at a cost a high price. enough standard.
Until then, managing multiple payout methods and currencies also becomes a notable problem for businesses.
Airwallex says inefficient payment systems lead to cash flow problems for SMEs, which could have damaging consequences. The company suggests a new, streamlined approach is needed going forward.
Shannon Scott, SVP Global Head of Product at Airwallex, said: “Software platforms and marketplaces are well positioned to fill this gap because they have closer relationships with their customers and understand the nuances of their industry.”
In fact, the report notes that around three-quarters (76%) of SMEs would be willing to pay more to access more dynamic and better-suited payment and banking tools, likely indicating that the additional costs would be lower than the losses they suffer. currently making below the limits of conventional banks.
Despite the very clear gap in the market, Scott says: “The opportunity is enormous, but untapped, for software providers to better serve customers with tailored offerings while unlocking new revenue streams for themselves.”