SMB Digital Banking - Banks Become Customers Business Partners

SMB Digital Banking: Banks Become Customers Business Partners

Converging factors are altering the banking industry for small and medium-sized businesses (SMBs). Banks are increasingly under pressure from new rivals who are effectively interacting with SMB clients to assist them in managing their money, and data-driven personalization is the next fight for banks. The epidemic is also driving a renewed emphasis on SMB banking via digital touchpoints, particularly data integration for business insights, analytics, planning, and management tools.

Banks must evolve to this new setting in order to avoid losing income to challenger banks and other new rivals, as well as to explore new possibilities for cross-selling, upselling, and increasing lifetime client value. Data-driven personalization may assist banks in deepening their connections with their SMB clients by providing a comprehensive perspective of the customer's finances and proposing the appropriate financial advice, products, and solutions at the appropriate stage of the customer's journey. Banks must reconfigure their services to anticipate clients' demands, give proactive insights, and provide automated services and product-based guidance, particularly for the unique needs and ambitions of SMB owners.

SMB Banking Customers' Changing Needs: Digitalization Initially

Customers are trying to go digital-first with more of their routine financial transactions as a result of the epidemic. SMB owners are wanting a greater degree of digital banking services that are geared toward their individual needs, much as consumers have gotten more familiar with digital banking tools in their personal accounts.

SMB consumers, on the other hand, have distinct requirements for their banking interactions. They are becoming increasingly digital, with more of their business being managed using cloud tools such as cloud-based small business accounting software or digital POS systems. SMB owners now expect banks to help them expand their businesses, stay financially secure, save money, and invest for the future.

Banks are at the heart of the SMB banking customer relationship, according to Open Finance.

SMB owners sometimes struggle to comprehend a comprehensive aggregated view of their finances. They may have several banking ties, several checking accounts, multiple savings accounts, employee retirement contributions, and personal retirement savings or investment accounts. For many SMB owners, not all of this data is ever accessible in a single location or on a single dashboard. Many SMB owners' financial data is stored in cloud accounting software tools and may not be accessible to their bank.

Open banking and open finance chances are providing banks with a new way to gain a comprehensive view of their SMB banking clients' financial life on both a commercial and personal level. An SMB owner's demands differ from those of a regular consumer banking customer; SMB owners want daily insight into their business finances, such as comprehensive cash-flow monitoring and real-time, individualized insights and recommendations. There is enormous potential for banks to serve as a more proactive, hands-on business partner, showing SMB owners how their organization is operating and offering particular advice for the business's complicated financial needs.

Personetics thinks that the bank should be at the center of the financial lives of SMB banking customers. Banks may gain important insights just by studying their own consumer transaction data. However, by delving deeper into open finance, banks will be able to merge client data from other sources such as wealth management organizations, lending institutions, insurance providers, and pension funds to gain a complete view of the SMB owner's finances.

Banks can use open finance to allow clients to link their external accounts. This enables the bank to run many models and deliver real-time customized solutions with the proper offer, APR, and financial solution for that customer's needs. It's not just about selling one product; it's about starting a bigger dialogue with the consumer and promoting financial health improvement.

Personetics Value Proposition: The Digitally Enabled Banking for SMBs

For SMB banking customers, the Personetics platform provides numerous crucial functions. We have the ability to work with the bank's own data as well as collaborate with other financial data aggregators. The objective is to provide a comprehensive picture of the SMB customer's finances, allowing the bank to make more relevant and useful recommendations.

Personetics' SMB banking business model comprises the following features:

• Dashboard: Assisting SMB owners in understanding their own finances by providing cash flow insights, cash flow support, and customized notifications and recommendations on a daily basis.
• Personetics may assist the bank in identifying particular insights about each SMB client, such as increases in income, advice to manage cash flow, and more.
• Automated Programs: SMB owners want particular assistance and counsel for financial goals like tax savings, payroll withholding, managing sales tax payments, and more. Personetics can automate these operations via automated programs.
• Personetics can assist banks in identifying SMB clients who will be suitable for small business loans, lines of credit, invoice finance offerings, and other financial services.

Banking Relationship Evolution for SMB Customers

According to Personetics, the connection between banks and their clients is shifting from a transaction-based relationship to a comprehensive picture of the customer's finances. This is especially crucial for SMB owners, who frequently have more sophisticated requirements.

Personetics' complete platform can assist banks in capitalizing on the new potential of SMB digital banking and building stronger long-term client connections in the following ways:

1. Services for Data Enrichment: Personetics enriches your own bank's client transaction data and develops financial maps for each customer's unique transaction history and trends by evaluating that data. We accomplish this in real-time, for any market, and with either internal or external data sources.
2. Client Engagement: The next stage for banks is to be able to reach out to each SMB customer with the appropriate product at the appropriate time. Some banks do not know their SMB customers well enough; SMB owners are concealed within retail banking. Some SMB customers are single entrepreneurs with distinct demands than bigger businesses; the standard array of business banking products may not be well-suited to their needs. Personetics assists banks in obtaining the right insights in real-time in order to provide relevant recommendations and higher-level support to these SMB customers on a daily basis – such as suggesting lines of credit and lines of credit, classifying solutions to facilitate invoices or paying off debt, and more.
3. Financial Wellness Automation: SMB owners have more sophisticated financial obligations than workers, such as managing payroll, withholding taxes, and contributing to their own retirement plans. Personetics can assist banks in automating their SMB clients' financial wellbeing, such as automatically saving a percentage of business income for taxes, creating savings goals, and more.
4. Personetics may assist banks in integrating data from other sources such as cloud-based accounting software, wealth management organizations, alternative lenders, and other small business service providers. By embracing open finance and integrating data from external sources, banks may generate a comprehensive view of the SMB owner's finances and assist their SMB clients on a more personal level.