EMEA BANKING
Overcoming scepticism around truly tailored advice is hard, but the first step to any proactive suggestions or advice is that it must feel personal. 4. Don’t make them work for it SME customers are always busy, and often looking for efficient help – that’s why proactivity is often wanted / required. But many customers (including SMEs) often feel they are putting in far more effort than the provider – so brands should, wherever possible, demonstrate that they are putting in at least as much effort as their customers (an effective customer – company effort ratio). Crucially, they should continue this throughout the relationship, not just at the start. This idea of ‘fairness’ can build relationships that last, and create advocates of brands. 5. Innovation, innovation, innovation The launch of PSD2 / Open Banking in January 2018 presents new opportunities for financial services providers to offer a whole range of new proactive solutions for SMEs. Providers could enhance their support of smaller businesses by developing products and services, utilising open APIs, that will tap into SME pain points and help ease pressure. As an example, SMEs are often time poor and find business administration an unwelcome drain on their time; they may also lack the resources or expertise to manage tax and accountancy obligations as well as they should. A service that could integrate with existing small business accounting software packages to automate and speed up invoice reconciliations, payment initiation and tax liability calculations ought to be very well-received. There are also opportunities to support SMEs with cashflow concerns and instant payments.
6. Fall in love all over again Demonstrating proactivity is likely to be a constantly evolving commitment to client service, but when successful, it will help build loyal, sustainable relationships with business customers, worth both the time and financial investment. The banks have not always enjoyed the best relationships with their smaller business customers over recent years. Perceptions of low willingness to lend and, in some instances, of declining levels of service and support can make SMEs keen to look for alternative sources of advice and ultimately finance. Demonstrating proactivity through these sorts of behaviours and activities could play a big part in convincing SMEs that you not only want their business, but you really value them. And those that truly feel valued may, in turn, support you by becoming advocates for your brand, making recommendations and referrals among their peers.
Georgiana Brown Research Director, Financial Services Ipsos MORI
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