SMEs adapt to new banking landscape
A woman swipes a Visa card to pay for a service. SMEs are embracing electronic banking as an alternative to conducting transactions. Photo by RACHEL MABALA
What you need to know:
- Digital banking for SMEs. Based on digital payments and online technology, digital banking offers a host of benefits to small businesses, such as rapid and cost-effective fund transfers, the ability to manage finances via a computer or mobile device, and supporting a cashless approach to business.
- Currently,fintech companies, including some banks, are now setting the agenda when it comes to small business banking. Traditional banks are eager for a piece of this action, ensuring this market segment will remain active.
Advancements in technology have changed the way we do business. The unprecedented evolution of information technology has affected life and banking worldwide. People are more concerned about how they use their time and how technology can make banking more convenient, faster, safer and simpler.
Small and Medium Enterprises (SMEs) are gradually embracing electronic banking (E-banking) as an alternative way of conducting their financial transactions.
SMEs
SME’s by their nature are time conscious so E-banking is a natural fit in as far as remotely accessing banking service with ease. Additionally, electronic banking provides real time access to banking information, 24-hour banking options, cash flow reconciliations, daily financial transactions etc. The nature of SME business has changed. Gone are the days when business owners could afford to, for example, first make a trip to the Bank for a statement to balance their accounts and make payments.
There is growing need for financial decisions and payments to be made expeditiously wherever whenever if any business is to enjoy competitive advantage. Electronic banking does away with the complexity presented by traditional banking. With dfcu Quick Connect –the online platform for businesses, settling of invoices and payroll management are now less burdensome as businesses have the ability to make multiple payments with just a click of a button
It is important to note that with dfcu’s Omni-Channel online platform, it is much more than just providing multiple ways for customers to transact through USSD for feature phone users, Online and App for Smart phone users. It is about a seamless and consistent interaction between dfcu Bank and our customers focusing less on transactions and more on the customer experience. As these benefits become clearer over time, SMEs are becoming increasingly willing to make the move to E-banking.
But there are still factors that will influence the adoption of e-banking and some may include; Internet service providers, cost (buying a mobile device and mobile data), level of education and risk management methods in place.
The writer is the Acting head of Alternative Channels at dfcu bank.
