Description
By 2030, the global economy will need to create conditions for 600 million jobs to absorb the growing global workforce, making the development of small and medium-sized enterprises (SMEs) a top priority for many leaders around the world. Governments have already allocated billions to support small businesses in mitigating the effects of the pandemic. The World Bank views micro and small businesses as engines of fast-growing economies. FintechOS shares this view, placing strong emphasis on SMEs.
Despite the significant opportunities they represent for financial institutions, SMEs often struggle to access the funding they need to grow or even survive. This issue has persisted for decades, with little sign of improvement. Banks undoubtedly play a crucial role in supporting this segment.
But what do banks think about SMEs? Are they seen as a vital source of business and growth? What challenges do banking leaders face? What key initiatives and advantages are they considering? Is there a “silver bullet” that can ease the transition to digital and help them keep pace with new market entrants?
FintechOS set out to find the answers.
From the report, you’ll learn:
- The main challenges SME bankers face today
- The strategic role of digitalization in unlocking the full potential of the SME market
- Executive perspectives on SME banking—based on interviews with business leaders from Banca Transilvania, FintechOS, First Bank, Lidya, Raiffeisen Bank, and others
- How incumbent banks are rethinking SME banking
- How banks are responding to the fintech challenge
Key figures from the report:
- Research by EY shows that SMEs account for over 50% of global employment and more than 40% of national GDP in emerging economies
- SMEs employ over 90 million people, nearly 70% of total employment in the EU’s non-financial sector
- SMEs generate around 60% of total gross value added
- Global SME banking revenue is estimated at $850 billion annually
- The SME bank lending gap in the Eurozone in 2019 was €400 billion (3% of GDP)
- 47% of European SMEs believe bank loans are not a suitable source of financing
- The largest SME credit gaps are in the Netherlands (22% of GDP), Belgium (14%), France (9%), and Italy (4%)
