- the next level -
From small business to medium business
As SMEs see the results of their organic business growth, they begin to surpass their old systems and recognize that they are no longer fit for their ambitious growth targets.
Perfect Stitch continues to grow, but Gretta is worried that she doesn’t have systems in place to sustain the momentum.
Perfect Stitch Business Profile
Trading: 10 years Revenue: $7.2 per annum Full-time employees: A warehouse, offices, website, stock, and regularly taking on agency staff to cope with spikes in demand
She’s not sure which platforms would work best for her type of business and feels intimidated by the setup and onboarding processes.
She has sales and customer data but no efficient way to keep track of all of it, so she needs to implement some corporate systems, including a CRM platform to efficiently keep up with her growing customer network and an ERP system to help her manage her business operations. Gretta’s also been thinking about expanding her business into the global market, which would require international warehouses and a world of new legal liabilities. With these new plans, she’ll need advice on spreading into international warehouses, ensuring that Perfect Stitch stays fully compliant across legal issues and taxation. At this point, Gretta’s trust in her bank is well established because they’ve helped her so much along the way. She weighs her bank’s recommendations accordingly because of the opportunities they’ve helped her see, the risks they’ve helped her avoid, and the ambitions they’ve helped her achieve.
“I think the one thing banks could do differently is use technology to better understand our business and offer more bespoke products.”
—CEO, Live Events Company, Temenos SME Think Space Innovation Series 2020
What the bank can do:
When SMEs are undertaking this stage of growth, banks that have made lasting relationships with their customers will come out ahead. Those long-tailed relationships allow banks to generate insights based on historical business data, which leads to the actionable insights that SMEs need for further growth.
A bank can offer Gretta:
Monthly financial reports and recommendations based on what-if analysis to help her navigate investments
Holistic views of various systems like payroll and ERP with the business’ overall financial profile
1:1 digital or in-branch expert advice on conducting international business
“I think the one thing banks could do differently is use technology to better understand our business and offer more bespoke products.”
—CEO, Live Events Company, Temenos SME Think Space Innovation Series 2020
The Power of a “Never Stop Learning” Mindset
In the aftermath of the 2008 financial crisis, ABN AMRO turned their attention to SMEs, creating a strategy based on marrying advanced technology with a personal touch. This shift led ABN AMRO to become a healthy, profitable global banking institution that would go on to rank on The Banker Top 1000 World Banks 2017 list. Their key to success? A mindset of curiosity and a culture of learning and innovation. By shifting resources to better understand their SME segment, the bank ABN AMRO grew offerings that were hyper-tuned to the needs of business owners across nations. In recent events, the bank has leveraged propositions to help SME clients navigate the COVID-19 crisis, going above and beyond the usual call of duty for banks. Digital initiatives have played a big role in this agility and improved time-to-value for SMEs. ABN AMRO embraced open data to create several API products to support different business functions. From their payment request application, Tikkie, to their Business Account Insights API, the bank allows SMEs to connect their ABN AMRO accounts to their other financial systems (like ERP or TMS) and have a complete overview of real-time transaction details and balances. Innovative products and services like these suit the bank’s strategy while providing its customers with solutions to their broader business needs.