Clients have come to expect their bank to provide digital services across all aspects of the customer experience , and are much quicker to turn away from an institution that lacks in this regard .
Without key fintech companies to enable these capabilities , many banks would find themselves losing critical ground to their competitors .
From providing core banking systems to modern APIs and hyper-personalised client experiences , fintech has met a growing demand for customers of all ages and demographics .
Over the next 10 years , we can only expect fintech ’ s role in the banking sector to grow . I believe that many banks will see their fintech counterparts as an essential extension of their internal team – rather than just a vendor .
Q . How is fintech improving the financial experience for SMBs today , and how much easier will financing become for SMBs in the future ?
» As banks look ahead , regardless of customer segment , they must evolve their role as a financial hub for customers by bundling a variety of relevant services .
For small to medium-sized businesses ( SMBs ) this is especially critical . The SMB has traditionally been an underserved demographic when it comes to their banking providers – they do not need or qualify for many of the products that are geared towards large enterprises but they also cannot use the retail customer products .
But , with 99.9 % of businesses in the US being SMBs , this is a demographic that banks must better cater to as they seek to grow . However , the ability to partner with fintechs and create marketplaces for the SMB customer means that banks can enhance
“ Today ’ s banking customer has become accustomed to tailored recommendations based on patterns found in their personal data ”
the value of their banking relationships with owner-operators .
The reality is that the average SMB owner has at least seven subscriptions they have to select , source and keep track of – a tedious and cumbersome hurdle .
But , as banks work with marketplace enablement partners like Amdocs , they can simplify the complexities of offering third-party services like accounting , taxes , website hosting , operations and human resources technology , to serve as a onestop business partner / enabler for this critical customer base .
Creating a viable banking marketplace for these business owners can also empower banks to generate new revenue by serving as the central channel for third-party services , augment traditional banking services with bundles and rewards that drive more loyalty and long-lasting relationships , and attract new small business customers with a combined services incentive .
Additionally , as SMBs look at their financing options , the more embedded they are as a customer , the more likely they are to explore the products their bank offers .
Banks that have not only created a thirdparty marketplace but also a customised
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