Though the SME market segment is worth upwards of US$850 billion globally, traditional banks tend to overlook SMEs in favor of the bigger retail market and large corporate accounts. As such, SMEs aren’t getting the much-needed support from the legacy banking industry, according to the Capgemini Research Institute’s World Payments Report 2022. Consequently, SMEs are struggling with poor liquidity and cash flow issues, operational inefficiencies, and cybersecurity issues, increasing their dissatisfaction with the current banking system. As a result, 89% of SMEs surveyed think they are underserved by their primary banks and are contemplating shifting to more accommodating alternatives such as fintech companies and digital payment providers.
