Accelerating digital transformation strategy to support SMEs customers to thrive
In 2019, small businesses accounted for 35 per cent of Australia’s gross domestic profit and employed 44 per cent of Australia’s workforce. Fast forward to 2020, in a new Covid-19 environment roughly 900,000 businesses are claiming JobKeeper payments (as of September 2020), and about 690,000 businesses have received cash flow boost assistance from the government. The impacts of the pandemic have resulted in 38 per cent of businesses still trading but have renegotiated their rent arrangements, and many have delayed payments on bank loans. Catastrophically, approximately 200,000 ceased trading by the time JobKeeper was announced.
With a new volatile financial landscape disrupted by the pandemic, the consequences will see businesses and the SME segment continue to be affected until a more permanent solution is available to address the pandemic.
How can Banks enhance the experience for the SME segment by leveraging digital channels?
Online banking and mobile app channels are the key interfaces for banks and financial institutions to deliver omnichannel customer experiences that are accessible, frictionless, and seamless to support the SME segment through;
- Reduced loan origination and processing times, including deferrals and top-ups
- Access to meaningful real-time financial insights
- Resources to provide support and guidance during their business lifecycle journey that speaks to the different phases of their business growth
- Simplified onboarding and origination processes
- Digital invoicing and ease of processing payments
Dom Monty, GM of Digital Banking at Sandstone Technology commented, “The market will only continue to grow, and banks must start to address their services for SMEs to retain and grow their customer base. However, to meet those needs your digital transformation strategy starts internally with customers at the focus and truly understanding what the customer journey looks like to help them thrive.”
With Australia’s first recession in nearly 30 years now in motion, hardship is on the horizon and there are growth opportunities for SMEs.
To read Sandstone Technology’s full report SMEs affected by Covid-19: how digital banking can extend support, please visit www.sandstone.com.au/whitepapers/smes-affected-by-covid-19-how-digital-banking-can-extend-support
