Survey uncovers regulation and compliance as biggest uncertainties bankers face - Developing the mobile channel for SMEs is their top priority
Jersey City, N.J. - 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.”
Fundtech offers a comprehensive line of transaction banking solutions to banks and corporations of all sizes around the world. As a strategic supplier, our clients benefit from lower operating costs and an enhanced end-user experience through our integrated and feature-rich solutions. Our major product lines are: global and regional payments, corporate cash and liquidity management, financial messaging, electronic invoice presentment, supply chain financing, remote deposit capture, merchant services, credit card gateway and mobile banking products. Fundtech offers its software through a traditional software license and a Software-as-a-Service (SaaS) contract. We operate Fundtech Connect, one of the world’s largest services bureaus that addresses the unique needs of the financial services industry. Thousands of financial institutions and companies worldwide rely on Fundtech’s innovation to improve operational efficiency, increase revenues, and provide greater competitiveness through business-to-business services. Founded in 1993, Fundtech was acquired in 2011 by GTCR, a Chicago-based private equity firm. For more information please visit www.fundtech.com
(USA) Binna Kim – Cognito / +1 646 395 6304 / Binna.Kim@cognitomedia.com
(UK) Chanda Gathani - Metia Ltd. / +44 (0) 20 3100 3605 / email@example.com
George Ravich – Fundtech / +1 201 215 6530 / firstname.lastname@example.org