SMBs are looking for more secure finances as traditional banks fall short

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New research from payment and financial platform Airwallex has claimed four in five SMBs are looking to switch away from traditional banks for their payment needs, with many favoring cloud-based financial services.

The desire for a shift comes as 82% of SMBs globally (more in the UK and US) feel “overlooked” by their existing conventional banks.

With heightened interest in the anticonventional, Airwallex says now could be the time for other marketplaces like ecommerce, CRM, and expense management platforms to take a slice of the pie.

Banks are failing SMBs, says report

Extended processing and settlement times and high transaction fees were problematic for 45% and 41% of the businesses asked, respectively, which suggests that conventional banks may not be able to offer what cross-border and multinational SMBs require, or at least to a high enough standard.

To that point, managing multiple payout methods and currencies is also becoming a noteworthy problem for businesses.

Airwallex says that inefficient payment systems are leading to cash flow issues for SMBs, which could have damaging effects. The company suggests that a new, streamlined approach is needed going forward.

Shannon Scott, SVP of Global Head of Product at Airwallex, said: “Software platforms and marketplaces are well-placed to fill this gap because they have closer relationships with their customers and understand the nuances of their industries.”

The report even noted that around three-quarters (76%) of SMBs would be willing to pay more to be able to access more dynamic and better-suited payment and banking tools, likely indicating that the additional cost would be less than the losses they are currently making under the confines of conventional banks.

Despite the very clear gap in the market, Scott says: “The opportunities are huge, but untapped, for software providers to better serve customers with tailored offerings while unlocking new revenue streams for themselves.”

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Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!