Today, small and medium-sized companies (SMEs) in Mexico face very complicated processes to access bank financing, so they opt for other sources. In this sense, there is a great opportunity to reactivate and encourage the incorporation of accounts and the origination of credits to this sector, through digital models, reveals a study carried out by the IPADE Business School and the Bring Global firm.
There, it is highlighted that although banking is one of the sectors that relies the most on technological development, there are still areas of opportunity on the way to digitization in the attention of SMEs, to offer solutions adapted to their particular needs and a better user experience.
“Counting on a digital solution for the incorporation of accounts and origination of credits, would greatly promote a greater link between Mexican banks and SMEs,” he says.
The report “SMEs, the great digital challenge for Mexican banking” highlights that this segment represents a primary factor in the activation of the economy, since there are around 4 million that employ about 36 million people, generating approximately 70% of the GDP, but even so, in the last five years, only 23.7% obtained financing and this even began to decrease from the banks, more as a consequence of the pandemic.
He refers that some of the factors that influence this situation are: high business mortality; technological infrastructure that hinders the integration of information; lack of appetite to grant credit; and that there is external information from the companies that the banks do not consider.
Similarly, the large number of requirements to apply for a loan have an impact, such as, for example, having a minimum operating age of the business of two years, and even verifying sufficient operating flows or even guarantees and endorsements; in addition to the existence of a negative or insufficient credit history, among others.
The report indicates that despite these factors, SMEs continue to search for sources of financing to survive the difficult environment.
“The bank has a great opportunity to reactivate and encourage the incorporation of accounts and the origination of loans to SMEs, through digital models, generating support and loyalty, as well as propping up an accelerated economic recovery,” he points out.
Rafael Ramírez, professor of the economic environment area at IPADE, mentions that the little access of SMEs to sources of bank financing is not so much a matter of costs or commissions, but of making processes much more agile and less bureaucratic.
Optimization of processes
The study mentions that the recovery of the banks’ confidence in the SME segment will drive the need to make processes efficient and improve the experience, obtaining benefits such as less interaction with executives, when communicating through digital media.
But also, an optimization of processes; costs reduction; raise customer service levels, and decrease losses from fraud and cyber risks. The foregoing, the document emphasizes, demands an investment in existing technology platforms.
“The level of digital maturity that traditional banks have in Mexico is still low compared to other regions where we see a high rate of digital incorporation of accounts,” explained Rafael Ramírez.
The report argues that SMEs are relying on fintech to make their payments and access financing sources, since they do offer technological solutions to improve their efficiency and lower costs.
Reference-www.eleconomista.com.mx