It is here! A wake-up call for Banks.
One of the latest studies in the financial and banking sector has reported that more SMEs in USA and Europe prefer new technology-based financial service providers to their banks, to conduct their fund transfer activities.
The prime reason quoted for the switch is the efficiency of the fund transfer system followed by the Fintech companies, which offers better real-time benefits in the movement of money to both parties.
The study indicates a growing behavioural change among the SME sector, and points out that the way they’ll do business in the future may well be guided by such advanced technology features than by the traditional norms of customer relationship based banking.
In the USA alone, it is noted that two-thirds of the business decision-makers in this market segment have already switched over to financial service providers with real-time Fintech features.
Small and Medium Enterprises from Europe have also endorsed this experience and are following this perception and switching loyalties to Fintech-based service providers.
The figures across the Continent show the emerging picture with larger significance :
- 75% of businessmen in France today prefer financial service providers to banks
- The figure is 58% in Germany for the same sector
- Italy runs up to an amazing 90% level opting for real-time payment benefits of Fintech companies
One of the main benefits they appreciate in this new development is the faster rate at which the system operates, to enable their payments to be received from customers. Nearly three-quarters of the sample surveyed agreed to the appeal of this aspect of the infrastructure.
Interestingly 54% felt that the benefit could enable them to make faster payments to their suppliers as well.
Mobile-compatibility and P2P payment tools are other attractions that are motivating these SMEs to change habits and bring paradigm changes in their system of business operations.
Newer technologies are absorbed with greater enthusiasm by the target groups than ever before, noted the study.
Delays in outgoing and incoming payment transfers has been a frustrating experience for SME customers of banks across global financial centres and the arrival of new digital technology has come as a saving grace, to the corporate sector and a great relief to their financial worries.
“Banks have a real opportunity to work with their customers and offer the new and innovative services they really want … The real-time schemes currently being built in the U.S. and Europe will empower customers and businesses to send and receive real-time payments from their existing accounts and will also provide a platform for banks to launch new services built around a real-time payments hub for today’s digital economy”, noted a leading expert in the field of Fintech solutions consultancy.
