An evaluation of emerging opportunities in business banking, including a comprehensive benchmark analysis of European SME fintechs and four future product scenarios.

Business banking is the new fintech battlefield. Even though small businesses represent a substantial market opportunity, they are an underserved, neglected niche market that is still owned by slow-moving incumbent players. If that sounds like a major opportunity for market disruption, you’re right.

While I have been part of the business development team at the SME fintech Holvi, I experienced first-hand how European sole traders and SMEs (small- and-medium-sized enterprises) struggle to find the right financial products. Due to the highly fragmented nature of the SME market paired with high costs to underwrite and serve small business clients, traditional banks had no incentive to create tailored SME products. Rapid advancements in technology, automation, online targeting and customer acquisition, digital interoperability via APIs now make it possible to profitably service the SME segment with next generation digital business banking services. Our whitepaper dives deeper into the emerging opportunities in business banking and particularly covers three sections: the market opportunity, fintech landscape and future product innovation scenarios.

The SME market opportunity

In order to put the SME fintech opportunity into context, the report defines key SME customer segments, provides a quantitative overview of the market and illustrates their banking needs based on qualitative research conducted by Ross Republic.

Analysis of European fintechs targeting SMEs

Several fintech companies are already operating in the SME market space. This section contains an in-depth benchmark analysis of key European fintech companies that target SMEs and an overview of the current state of the digital business banking market, which lately has become a red ocean.

Where to play and how to win in SME banking

Where is the SME banking market is going and how can banks or fintechs capture new market opportunities? Increasingly, SaaS providers that target SMEs integrate banking features. In order to compete in this new API-driven market, SME-focused banks either move up or down the stack, which is demonstrated in four distinct future SME banking product scenarios.

Request the full white paper

Whether you’re an investor, software provider, bank, or fintech that seeks growth opportunities in SME banking, this report equips you with market insights and inspiration for creating next-generation SME services.

Please contact us to receive the full white paper.

About the author

Adrian Klee, partner at Ross Republic

Adrian Klee

Adrian is an expert in building digital business in the financial services sector. He has a background in Fintech and Consulting, and specialises in market research, digital service development and lean venture building.

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