Invoice to pay for SME customers
Worldwide, SMEs produce about $850 billion of annual revenue for banks,
through deposits, lending, overdrafts, and payments. That is about 20
percent of all banking revenues.ยน The global market is expected to grow
by around 7 percent annually over the next seven years.
As per a Mastercard report, the number of freelancers is expected to
grow to approximately 915M by 2023.
This work paradigm is fuelling innovation to efficiently manage the
invoice to cash cycle as these digital native SME customers expect
customer experience akin to their retail banking/fintechs.
How can your bank serve the needs of burgeoning digitally savvy SME banking customers?
Banks can deepen the relationship with the SMEs, Gig economy workers et
al by going deeper in the value chain and offering embedded finance
products.
While there is a clear need for a comprehensive CX enhancement, banks
can enhance their product portfolio with digital value-add offerings
which help manage cash flows, invoicing, payment cycles, tax
preparation, etc to help SMEs with their day to day work and also offer
data based recommendations.
BankBuddy Invoice to pay platform helps your SME customers save 30-40%
of time and effort by shortening the cash conversion cycle with
electronic invoice presentment , tracking of receivables & payment and
preventing errors and associated delays.
While making payments, the business will have one single dashboard of
all their AR and AP data for efficient cash management, with the option
to choose their preferred payment/FX provider and funding account via
open banking or their Payment service provider (PSP).
Financial institutions can create an ecosystem for SMEs and their
customers with participation from various FinTech players for downstream
products like working capital management, advisory services, supply
chain finance etc.
Benefits -
- Drive viral digital sales- to SME customers & non-customers by offering a one-of-a-kind cash management and invoicing solution.
- Enhance digital engagement, increase customer LTV by at least 30%, and ensure churn prevention with micro-targeted offers and recommendations based on unique client needs.
- Gather valuable business insights from customer AR and AP data and leverage them to strategically segment clients, map credit and risk scores