How to get big in SME business banking

24 November 2016

Small businesses contribute roughly 5-10% of total revenues to banks per year on average. With such a substantial revenue pool one would imagine banks would be falling over themselves to service this segment. But most see the small business market as unprofitable and costly to serve, in other words, as an obligation rather than an attractive business in a bank's portfolio.

Yet, our research and client work shows that the small business segment is worth winning. Not only do small businesses have a number of high-value unmet needs but there are also many concrete factors that have left many banks' small business divisions much less profitable than they could be. They include relatively weak digitization, inadequate segmentation, poor sales alignment, inconsistent pricing practices and lack of predictive credit risk modeling based on account data. By addressing those issues, banks stand to improve revenues by 20-25%, reduce cost-to-serve by 5-10% and sharply improve their non-performing loan (NPL) ratios.

During the webinar session, we will touch the following topics:
- Highlights from 2016 BCG corporate banking performance benchmarking
- Digital and Fintech trends in the SME space
- Levers to improve profitability in SME

Join us online and register for the Efma Webinar that will take place on Thursday 24 November 2016 from 3 pm CET to 4 pm CET.


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