- Survey uncovers regulation and compliance as biggest uncertainties bankers face
- Developing the mobile channel for SMEs is their top priority
Fundtech, a market leader in global transaction banking solutions, today announced the results of a live poll conducted at its annual North American Insights client conference held at the Arizona Grand Hotel in June. Surveying 137 banking executives from over 100 financial institutions, the poll addressed the challenges and opportunities banks face in targeting the small-to-medium enterprise (SME) segment.
Summary of Findings
Top Challenges and Opportunities in the SME market
The survey revealed that bankers see very strong potential for the SME segment, with strong demand for new services, especially mobile banking:
- 95% of bankers describe the untapped potential of the SME market as equal to or greater than any other present opportunity; 57% describe it as huge or large.
- 60% said that the demand for new services from their SME clients is more than usual, while almost 20% said that the increased demand is “unprecedented.”
- 38% said that developing or expanding their mobile banking channel is their bank’s top priority for the SME market. Reducing the cost of servicing this segment is also a top priority (34% said it was their number one priority).
- 67% think that social networking has a potential role in their SME plan, though they are not yet sure how.
- Almost 60% said they see some evidence of non-bank competitors taking away business from them in the SME segment.
Regulation and compliance stood out as leading concerns among the bankers surveyed. Results show a continuing lack of clarity around what must be done to comply with new regulations (such as Dodd-Frank), and the expectation that there will be additional regulations to follow.
- Over 30% said that they either were not sure what their department must do in order to comply or they had many questions. Almost 50% said that they “mostly” understand what they need to do.
- Most (56%) believe that Dodd-Frank will undergo major revisions in the coming years, while 33% think that “this is just the beginning” and that there will be many more new regulations.
George Ravich, Fundtech Chief Marketing Officer, said: “The SME market offers an enormous growth opportunity to banks that understand their unique needs. For the millions of SMEs that consider their pick-up trucks as their offices, the mobile channel provides a compelling level of convenience and control. The key to success is offering this market segment well-designed options that are developed for the three major platforms-smartphone, tablet and computer.”