U.S. Needs Smarter FinTech Regulation To Compete Globally
Countries with centralized #FinTech #regulation can provide more support to innovative firms than the U.S. with its fragemented governance.
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How the Innovation Team at BBVA Compass Focuses on Needs, Revenue
PREMIUM – #BBVA #Compass, the U.S. arm of the Spanish bank BBVA, has no designated #innovation head. Instead, all innovation initiatives fall under the bank’s head of business development, José “Pepe” Olalla. BBVA has more than 15 million mobile active users. Olalla, who has been with BBVA since 1992, served as BBVA’s Chief Information Officer […]
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Alexa Needs Comprehensive Customer Data To Offer Individual Financial Advice
A good digital user experience in finance requires a good interface backed by integrated #customer #data to provide #advice and access to the full range of a firm’s products.
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ACH Is a Sieve of Fraud That Needs to Be Fixed
EXCLUSIVE – This month, my company, Royal Media, was robbed. This was a civilized heist, mind you. No guns were involved, no one got hurt — in fact, not a sound was even heard. It was a faceless theft, as well. Its discovery started with an innocuous question by a colleague: “Do you have a Walmart credit …Read More
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For Payments, Banks Should Use Technology as a ‘Bridge’ for Client Needs, BNY Mellon Says
EXCLUSIVE— #Banks are juggling a lot of change when it comes to the world of #payments, but in order to be successful, banks #should avoid getting bogged down in one specific #technology trend, BNY #Mellon told Bank Innovation. Michael Bellacosa, head of global payments product management with BNY Mellon, told Bank Innovation in an emailed […]
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Mobile Payments Needs to Move Past ‘Chicken-and-Egg’ Syndrome for Higher Adoption
While #mobile banking has become normal for the majority of Americans, mobile #payments remain less ubiquitous in the U.S. To change that, merchants and consumers are going to have to find a way out of the “chicken-and-egg” #syndrome that is slowing #adoption, a report released last week by Federal Reserve Bank of Boston found. While […]
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Europe Needs to Catch Up in the ICO Race
ICO funding has quadrupled in 2017, with $ 2.8 billion raised using the unconventional method this year compared to just the $ 228 million raised by ICOs in 2016. The U.S. and Asia are the leading places for ICOs, according to the Initial Coin Offering Funding Report, which was released last week by data analytics company Funderbeam […]
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Credit Needs to Fix its Customer Experience Along with its Security, Final Says
EXCLUSIVE— As recent hacks such as Equifax demonstrate, #credit providers have work to do to gain back consumer trust, and doing so is going to require fixing the #customer #experience as well as data #security. Providers should work to provide a more customer-centric experience, according to Aaron Frank, co-founder and CEO of credit startup #Final […]
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Temper Fintech Search to Address Specific Needs [VIDEO]
Pairing up with fintechs can provide quite a few benefits to #banks, as long as they pick the right partners. Banks have been spending more and more on deals just to make sure they don’t get left by the wayside–JPMorgan Chase, for instance, spent $ 600 million on #fintech alone in 2016, according to the bank’s […]
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Swiss Banks Are Falling To Meet Corporate Clients and SME Digital Needs
A new report by Swisscom’s think tank e-foresight and the Institut für Finanzdienstleistungen Zug (IFZ) found that the vast majority of #banks are #falling to #meet consumers&8217; #digital #needs, notably when it comes to small and medium-sized enterprises (SMEs).
The report points out how banks can fill the gap between their digital offerings and the real needs of their #corporate #clients.
The research program compares the digital offerings of 50 retail banks and the needs of 473 SMEs. Most particularly, it focused on five specific areas: e-banking, communication channels, payments, financing and banking-related products.
The study found that 66% of the surveyed banks are late followers, 29% are followers and only 5% are considered as being first movers.
Late followers are those that haven&8217;t launched any digital initiative or that has only launched isolated initiatives in terms of offerings to SMEs.
Followers have proposed their first products and are serving customers.
First movers have advanced rapidly toward digitalization and are at the forefront in term of their digital offering to SMEs.
For e-banking, although a number of banks are already offering solutions, the level of innovation remains low and corporate clients are demanding more digital solutions and functionalities.
80% of banks are offering push notifications via email or text message and 26% are offering personalized homepage. Only 8% are offering accounting software solutions, although 62% of clients said they considered these solutions as being important or very important.
Another area where banks are falling behind is the communication channels. Despite clients claiming that web chat, the ability to book meeting appointments online and video format advisory are important or very important, only a few banks are offering these services.
SMEs are also demanding various digital payments solutions including online and mobile payments solutions, which a number of banks are already providing.
Alternative financing solutions is expected to grow in popularity, and SMEs are requesting online onboarding processes notably to open business accounts (54%), but also for online mortgage applications (29%) and renewal/extension (43%). Less than 10% of banks surveyed are currently offering any of these solutions.
Finally, as for banking-related products and services, SMEs said that are interested in online factoring (17%) while only 2% of the surveyed banks are actually offering this service. 21% of SME clients said they are interested in the possibilities to bundle through business networks, but only 4% of banks are proposing this. Finally, 10% of the banks said they offer insurance products online, while only 5% of SMEs believe this is actually important or very important.
The report advises banks to start considering SMEs as an entirely separate segment in their strategy. Banks should focus on building and delivering solutions that SMEs are actually demanding and offerings that effectively help them, notably in areas that include e-banking and online assistance and advisory. Banks should also develop “an intelligent combination of banking and non-banking services” to build customer loyalty.
&8220;Globally, banks are only at the beginning of their digitalization efforts in products for SMEs,&8221; the report says. &8220;Most of them have been primarily focusing on the retail banking segment.&8221;
&8220;Digitalization is not an end in itself, it must be put in place to better and/or more easily serve clients&8217; needs. (…😉 Corporate clients consider the most relevant areas as being solutions and functionalities related to transactions and auto-administration in e-banking, which simplify their daily activities or improve their processes. These aspects demanded by corporate clients are currently not provided by any of the banks.&8221;
Featured image by IFZ
The post Swiss Banks Are Falling To Meet Corporate Clients and SME Digital Needs appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
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