A survey conducted by Fundtech has indicated that banks see the
SME market as the one offering the greatest growth potential, with
the majority of respondents seeing evidence that non-bank players
are taking business away from them in that sector.
137 banking executives from over 100 financial
institutions were polled at the vendor’s annual North American
Insights conference in June.
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Those surveyed singled out mobile banking
services for SMEs as the service with the greatest growth
opportunities, with 95% of bankers describing the untapped
potential of the SME market as equal or greater than any other
present opportunity.
Six out of ten said SME clients now demand new
services on a regular basis, while almost 20% said that the demand
is “unprecedented.”
For this reason, 38% said they are looking to
prioritise the development or expansion of their mobile banking
channels for SMEs while reducing the cost of servicing this
segment.
Six out of ten participants stressed there is
evidence of non-bank competitors taking away business from them in
the SME segment.
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By GlobalDataRegulation
The survey also highlighted banks’ major
concerns, putting regulation and compliance at the top of the
list.
These are fostered by an ongoing lack of
clarity around what must be done to comply with new regulations
such as Dodd-Frank, and the expectation that there will be
additional regulations to follow.
Almost a third of participants said they were
not sure what their department must do in order to comply. Six out
of ten of bankers believe that Dodd-Frank will undergo major
revisions in the coming years, and expects new regulations to come
in.
Fundtech head of marketing George Ravich said
the SME market offers an enormous growth opportunity to banks that
understand their unique needs.
“For the millions of SMEs that consider their
pick-up trucks as their offices, the mobile channel provides a
compelling level of convenience and control. The key to success is
offering this market segment well-designed options that are
developed for the three major platforms-smartphone, tablet and
computer,” he said.
