Small businesses are at the forefront of financial evolution
This segment, which ranges from independent workers to small businesses, has historically been excluded from the formal financial system. The banks that are capable of designing customized solutions will be the winners, targeting a market that promises a high ROI
In the world of American business, small businesses are a central component and power the country's economic engine.
These are businesses with fewer than 500 workers, according to the United States Chamber of Commerce, which describes them as a universe comprising 32.5 million participants and counting. However, from a more granular perspective, the figures group together ventures with one or two owners and their employees, as well as independent workers.
It is a very broad market and one that is always evolving, with particular financial needs that indicate the way towards its growth and consolidation. This translates into opportunities for entities with offerings specifically designed for this audience, which will continue to expand.
WHAT DO SMALL BUSINESSES REQUIRE?
Being a heterogeneous universe, their needs generally depend on the customer profile:
- Independent workers: better known as freelancers, they carry out a commercial activity (journalists, lawyers, youtubers, etc.) and work autonomously. They take on a large number of tasks and their time is very valuable, so their focus must be on maximizing their net income.
- Entrepreneurs: their businesses employ up to a maximum of 15 workers and they lead the way. They are very careful with their information and seek to be in control of their business. They have needs relating to the management of their finances and those of their employees in the most comprehensive yet simplest way possible.
- Employees: they are the face of the operation and, therefore, have a responsible, efficient and intuitive profile, attributes that they also expect from their financial environment. The administration of their accounts must be agile, with useful information and solutions, such as the management of their personal finances available 24/7.
It is clear that, like their needs, their demands in terms of technology and processes have different aspects.
On the one hand, these clients demand 100% digital onboarding for opening accounts. We are talking about workers and business owners who value their time and, therefore, digital procedures too. Opening accounts remotely provides a high degree of security and protection of their personal data, without taking too much time.
Despite the fact that digital onboarding is already considered an essential asset for banking, the key is in it being efficient, intuitive and secure. This means, for example, that you don't start with a transaction on your mobile and end up at the branch.
However, the data unfortunately shows that difficulties persist in this area. Between 20% and 25% of consumers have not achieved successful digital onboarding despite it being their preferred option, according to the Digital Banking Consumer Survey: PwC.
They also expect to acquire accounts or new products and services through an omnichannel and immediate format. According to the client profile of small companies, they have a very dynamic pace of activity and are accustomed to change, so they are especially receptive to new service formats and, in fact, demand them.
FUSION BY VERITRAN: A MILESTONE FOR THE CATEGORY
Given the growth of the segment, the digital financial market has taken note of the needs and demands of small businesses, ready to position itself as a strategic ally for the sector’s growth.
Veritran, a leader in the development of digital business solutions, offers a tailored product for banks to provide specific options for new enterprises.
Its Small-Business Solution is an innovative proposal to develop mobile digital channels with financial and non-financial functionalities, which adapt to the needs of each client profile that makes up this segment. Fusion by Veritran enables these users to manage their finances easily, efficiently and healthily.
It allows institutions to expand their offering and make it more competitive by differentiating their commercial proposal of products and services and communication. That means providing tools with which companies can manage their finances.
This is a very important point since small business owners often mix their personal and work finances when opening an account or linking their firms with the financial system. In the long run, this can affect the good running of the business. And because this means account holders display greater-than-expected income profiles, they can be migrated to company banking, which generates tensions within the bank.
Veritran's digital solution enhances the acquisition of new customers and the loyalty of existing ones, while promoting cross-selling by generating new transactions and delivering more powerful and personalized communication (including personalized offers).
It also makes it possible to collect more information on the user's transactional behavior, which translates into internal efficiencies by facilitating payment and management processes, generating a significant reduction in costs.
In addition, Fusion by Veritran's technology takes in the full life cycle of the business as it grows in output and also in number of employees.
In other words, it will no longer be necessary for customers to migrate to other segments and face obstacles such as having to adapt to another platform. This leading technology adapts to growth, as it offers an upgrade from one sub-segment to another in the simplest way possible.
Through customizable administration modules for user management, it is possible to assign roles and permissions to employees, depending on their responsibilities and the strategic needs of the business.
Small businesses will continue to flourish for years to come. Financial institutions have the opportunity to accompany them with digital tools that enhance and maximize their development, both for their benefit and that of the economy in general.
In order to achieve this, they will need a lot of innovation as well strategic planning. A partner that can provide the know-how will be essential to meet the targets.
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