According to EY’s Global FinTech Adoption Index 2019, one in four small and medium-sized businesses/enterprises (SMEs) has used a fintech service in 2019 (25% fintech adoption). The report also estimates that the global adoption rate could surge from 25% to 64%. As the number of SMEs going global rises, the demand for fintechs that offer reliable small business payment services also increases.
Here are the top 3 reasons why SMEs are turning to fintech solutions instead of traditional financial services, according to the EY report.
Range of features
This simply means options. SMEs are increasingly looking for B2B payment services that offer more bang for their buck. Fintechs have long prided themselves on being feature-laden yet specific in what they do. For example, a cross-border payment hub typically offers a variety of payment methods, as well as supports most IT systems and most currencies (wide network) for any transaction.
24/7 service and support
In an always-on age, fintechs have bridged the customer-centric gap. Fintech adopters are typically of a younger generation. These consumers are tech savvy and they are always online. For them, round-the-clock service and support is a given. A fintech eyeing success knows it must do the same.
Ease of setting up, customising and using a service
It makes sense. Many incumbent financial services are less willing to innovate to enhance overall user experience because of brand recognition. As a result, fintechs, ever willing to take risks, will shave extra minutes or seconds off payment processes and offer great user experience at the same time. An example is a cross-border payment hub customising its API to integrate with a client’s system instead of the other way round, as is common with traditional services.
With lesser “brand burden” and not bound by conservatism, fintechs are more likely to break the mold. It is only natural that the younger generation, which typifies the modern SME, also chooses the road less travelled.