BANKING
Q . WHAT DO YOU THINK WILL BE THE TRAJECTORY OF SMES ’ RECOVERY , AND WHAT CHALLENGES OR OPPORTUNITIES EXIST FOR FINTECH LENDERS ?
CG : Different sectors will experience different paces of recovery , but many small business owners have built up resilience throughout the pandemic . Access to finance will be key for their recovery . When iwoca conducted a
survey of accountants in March 2021 , they advised that the top priority for businesses should be to ensure they ’ re well funded ( 49 %).
Embedded finance is a huge opportunity ahead . Small businesses need to be able to access finance when and where they need it . Services they can use day-to-day like bookkeeping apps , payment processors or invoice management systems accommodate this requirement . The ability for the industry to offer this flexibility to their customers will create a powerful support tool for small businesses , enabling them to stay agile and get what they need quickly as they recover from the pandemic .
Like other aspects of finance , it seems that the future of small business lending will be centred on digital technology that can provide a more personalised experience to customers . Fundamentally , banks must try to close this culture gap if they wish to compete with the fintechs that embrace alternative approaches to lending . Indeed , with SMEs burdened by heavy amounts of debt from the pandemic , doing so could be essential to global economies ’ broader recovery plans .