LONDON, May 5, 2020 /PRNewswire/ -- SMEs bear the brunt of financial exclusion, but this must change in order to improve the economy as a whole, says financial infrastructure provider, Banking Circle.
Financial exclusion – defined as the lack of access to common financial services – is a widespread problem for SMEs.
Research by Banking Circle reveals that only 20 per cent of SMEs are satisfied with their relationship with their bank. And in the UK, almost 60 per cent of the workforce is employed by SMEs.
"As a society, we are missing out on a big opportunity," Banking Circle CEO Anders la Cour says. "We need to succeed in helping SMEs to grow."
So what are the key ways to increase financial inclusion? Regardless of the size or nature of a company, it must:
- Act as a global player – this means having access to accounts and the ability to transact overseas, dealing with multiple different currencies and cross border payments
- Work with SME specialists– providers who understand the challenges of being an SME will tailor their services to deliver cheaper, quicker and easier methods of increasing the speed of settlement cycles
"The financial services sector can collaborate to deliver solutions which help rather than hinder SME growth," la Cour explains. "Real-time or instant payments are essential to allow SMEs to keep up the pace."
Although many small-to-medium-sized businesses and start-ups find that the financial services do not always benefit them, this can be changed.
By reducing the cost of banking and transfers, improving cash-flow, enabling SMEs to grow and levelling the field to allow fair competition between SMEs and larger players, the wider economy and society as a whole will benefit.
To learn more about how to improve financial inclusion for SMEs and start-ups, read the full article or watch the video here.
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About Banking Circle
Banking Circle is a financial infrastructure provider to payments businesses and banks. It delivers banking services quickly, at low cost and in line with high standards of compliance and security.
It is focused on improving financial inclusion through its range of solutions.
Banking Circle has offices in London, Munich, Amsterdam and Copenhagen and is headquartered in Luxembourg.