These findings come as the Monetary Authority of Singapore (MAS) looks to digital banks to help support the underserved SME segment with the expectation of three wholesale banking licences to be issued in the second half of this 2020. Among the existing banking challenges expressed by SMEs we find unsatisfactory terms on corporate products and a lack of control over their banking experiences. In terms of desired improvements, they expressed a desire for greater convenience, value, and the ability to track payments and manage cash flow, according to the fintechtimes.com.
More than half the respondents believe that digital banks will provide an overall lower cost of banking (55%), increased convenience (54%), greater ease in paying bills online (53%), and save time and effort when performing banking transactions (52%). Respondents are lured by the 24/7 availability of digital banks (58%), ease of making digital payments and transfers (56%), and efficiency of money transfers when receiving payments for goods and services (55%).
The study showed that SMEs have started using digital solutions for services such as accounting (49%), payroll (48%), invoicing (47%) and claims processing (46%). In addition, they have increased digital payments usage for subscriptions to third-party services (51%), paying for utilities (50%), travel expenses (49%) and paying salaries and bonuses to their employees (49%).
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