What do small and medium enterprises want from next-generation banking?

Abstract

Banking is changing, with much of the innovation so far focused on retail customers. Small and medium-sized enterprises (SMEs), a core component of developed economies, are underserved by existing banks. This paper looks at the changing expectations of SMEs in relation to banking services, foreshadowing the innovations likely to come in business banking. As part of the analysis, the paper explores the structural forces underlying current and future changes to the existing banking paradigm.