Description
Just as 2022 brought new financial challenges for small and medium-sized businesses (SMBs) and their financial partners, 2023 will bring new ones. Banks and technology providers must be ready to leverage the latest tools, data, and analytics to stay competitive or risk losing their edge. A combination of digital and human experiences, enhanced by intelligent, data-driven financial technologies, will help financial institutions face these challenges head-on.
But it’s not just about choosing the right tool—it’s about how a financial institution supports SMB owners when they need it most.
The report “4 Challenges Facing SMB Solution Providers in 2023” by Envestnet outlines how to turn four potentially harmful challenges into opportunities for SMB success:
- Engaged Partnerships
- Digital 2.0
- Financial Wellness
- Lasting Relationships
Key stats from the report:
- Cost-cutting became a priority for nearly three-quarters of companies (73%), with 15% allocating tech budgets to digital engagement solutions.
- 60% of consumers want to interact with financial institutions through a single platform, such as social media or mobile banking apps.
- 58% value financial apps like money management and banking apps; 54% wish there were a technology that could simply manage their finances for them.
- Customer loyalty is declining—one in three millennials plans to switch banks within the next 90 days.
- According to Harvard Business Review, reducing customer churn by just 5% can increase profitability by 25%–95%. To retain customers, institutions must know them, offering personalization, essential financial and banking apps, and human interaction in one place.
