By FintechOS · May 23, 2022
5 minute read

SME banking deposits online: you can take that to the bank

Digital SME deposits with FintechOS

SME banking is often an outdated process of manual deposits and paper forms. Like any other consumer, small and medium enterprises (SMEs) are looking for modern, digital providers. Yet, for SMEs, online deposits can actually offer a financial benefit in terms of fast cash flow. 

The bakery with more orders than they know what to do with; the start-up plant delivery subscription service figuring out how to scale up; the self-employed app developer trying to reach new customers – SMEs come in all shapes and sizes, and so does SME banking.

Regardless of how things may appear on the outside, on the inside, SMEs face very similar issues. For many, top of that pile is cash flow. Having a steady cash flow and, at the heart of this, being able to manage monthly SME banking deposits online, is intrinsic to an SME’s success, yet studies have reported figures as high as 82% of SMEs failing because of cash flow problems.

So what might be causing those cash flow issues, and how can we help solve them?

SME banking and cash flow

Cash flow is the basic nitty gritty of running a business and fintech has already done much to streamline and speed up the basics of getting paid for the work you’ve done, from automated software to modern banking apps with instant transaction notifications. Still, there are more efficiencies to implement.

A significant cash flow issue for SMEs is simply getting revenue quickly into their SME banking account. Whether it’s invoices being paid late or transactions taking several days to clear, the impact these delays can have on an SME’s finances can be damaging.

Unfortunately, the issue of invoices being paid late cannot be solved by fintech alone, but the second issue of transactions taking too long is exactly the sort of problem Lighthouse, our customer-focused banking platform, is designed to address.

Consumer priorities for SME banking

Running an SME comes with a whole host of priorities and challenges to juggle. For the bakery owner above, there’s the creativity needed for new recipes, as well as sourcing reliable staff to fulfil the orders. For the plant delivery service, there’s the transport logistics to figure out, and the innovative marketing needed to cut through the crowded social media noise. For the self-employed app developer, there’s the balance of coding and design against troubleshooting and providing end-user support.

The actual doing of the job is most likely why the business owner started their SME in the first place. That passion and enthusiasm for their job is enough to keep many SME owners going through the long hours and the hard work needed to succeed.  It’s the admin and processes that grind down many business owners. The inefficient use of time, hours spent on finance – whether it be loans, overdrafts, payments, or savings – are the same whatever line of business you’re in.

Remove these pain points and you’ll naturally have happier, more productive SME owners, able to focus on the things they love, and ultimately growing their businesses. This will allow the SME banking industry to win over SMEs from traditional SME banks.

Managing SME banking online

Our Lighthouse platform’s high-productivity fintech infrastructure empowers the SME banking industry to create products that take the sting out of cash flow issues and speed up SME deposits online. At the heart of our platform is our use of customer data at any stage of an interaction, and our fast time-to-market for launching products and customer journeys.

Customer data plays a big role in making deposit products smarter and offers better targeting, meaning SME owners have more insights into their revenue on their digital banking platform. They can then can plan their SME financing more accurately.

Furthermore, our SME banking solution is driving a surge in rapid, frictionless, on-demand payments that are quickly becoming the norm across the market. The benefits of this to SMEs are endless, but all tend to focus on helping, improving, and smoothing out that universal issue of cash flow.

The key to SME banking

With cash flow being the lifeblood of SME business, an IFC MSME Finance Gap study found that better digitization strategies, through technology adoption, are needed. As many as 40% of micro, SMEs in emerging markets need an estimated USD 5.2 trillion to develop and support their businesses.

Ensuring SME banking caters to the needs of SMEs is a no-brainer and is easily achieved on our Lighthouse platform. The fundamentals and basic principles that help keep cash flow fluid and monthly deposits timely, are seamlessly built into our software options and will quickly become second nature to developers.

Lighthouse inspires creators to make personalized products that truly answer SME needs, so when a SME client says they need to prioritize managing their monthly deposits online, it’s quick and easy to create that effortless customer journey using Lighthouse’s low-code/no-code interface.

It is not easy to open the way for innovation in a traditional banking market, but the desire and courage to offer our clients a different financing solution, 100% online was sustained by the boldness of our partner, FintechOS, to develop the necessary technology.

Kostas Tovil, SVP E-Commerce at TBI Bank

Lighthouse provides flexibility, automation, and fast online processes, so SME owners have time to focus on the creativity and passion needed to fuel and grow their businesses. That baker can create new recipes, that plant delivery subscription service can attract more members and that app developer can realize better tech solutions.

To find out more about FintechOS’ SME banking solution, see our Lighthouse product page.

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