Introducing Strands Compass: Helping SME’s Navigate their Financial Journey

by | Jul 2, 2024

Small and medium-sized enterprises (SMEs) are the backbone of our economy, yet they face significant challenges that hinder their growth and efficiency. According to McKinsey 2023 SME Survey, SMEs select their primary banks according to very clear criterias:

Those criterias can be easily grouped in the following areas:

  • Digital Automation Needs: SMEs and entrepreneurs now prioritize banks with advanced digital capabilities to automate administrative tasks. McKinsey Insights highlight that digital automation is a core driver for SMEs when selecting a bank.
  • Difficult Credit Access: SMEs often struggle with accessing effective credit approval processes. They need streamlined and efficient methods to obtain the credit necessary to fuel their businesses.
  • Fragmented Data Sets: Small businesses typically use a variety of software for accounting and payroll and maintain multiple banking accounts across various institutions. This fragmentation makes it challenging to gain a cohesive understanding of their financial health.
  • Demand for Data-Driven Advisory: SMEs seek value-added advisory services that help them understand and manage their finances across different platforms and data sets. They need actionable insights to make informed decisions.

“Meanwhile,  banks face their own set of challenges in serving SMEs effectively: they grapple with the need to offer better digital capabilities to attract and retain SME clients, integrate disparate data sources, and provide timely, personalized financial advice.”

How Can Banks Face the Challenge?

Banks can rise to these challenges by adopting advanced digital platforms that provide comprehensive, integrated solutions. Here’s how:

  • Leveraging AI and Data Analytics: By using AI and advanced analytics, banks can enhance their credit assessment processes. These technologies enable banks to analyze vast amounts of data quickly and accurately, providing deeper insights into an SME’s financial health and creditworthiness. This allows for more informed lending decisions and personalized advisory services.
  • Integrating Financial Tools: Integrating various financial tools into a single platform can streamline operations for SMEs. This approach simplifies financial management for SMEs and provides banks with a unified view of their clients’ financial activities, improving service delivery and customer satisfaction.
  • Enhancing Credit Assessment: With improved data integration and AI-driven insights, banks can better assess the risk associated with lending to SMEs. Comprehensive financial profiles generated from integrated data sets enable more accurate risk assessment, leading to higher loan approval rates and more tailored credit products.

Strands Compass: Tailored Solutions to Address Key Issues

Strands Compass is designed to empower SMEs by providing a suite of tailored solutions:

AI and Behavioral Analytics: Helps in transaction enrichment and identifying spending patterns, propensity analytics and other opportunities, which can lead to better understanding of SME customers specific needs.
Data Integration: Collects and reconciles invoices and bills from various sources, providing a unified view of financial health.
Credit Analytics: Facilitates higher loan approval rates by providing comprehensive financial insights based on streamlined borrower information.
Simplify AI insights: Provide tailored and personalized communication to drive understanding of finances and digital adoption.
Customer Hub: Strengthens relationships between banks and SMEs by offering transparency and personalized communication.
Fintech Resources: Data Driven Personalization in Banking White Paper

Redefining SME Banking: Navigating financial complexities with Strands Compass

Learn more about Strands Compass and explore its potential in transforming SME banking, encouraging a shift towards more comprehensive, efficient, and growth-oriented financial services.


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Want to Learn More?

Strands Compass is a game-changer in SME banking, addressing both SME and bank challenges with innovative, integrated solutions. By leveraging advanced analytics and AI, it empowers SMEs to manage their finances effectively while enabling banks to offer superior, personalized services. This launch marks a significant step towards revolutionizing the financial landscape for small businesses, fostering growth and stability in the SME sector.

Take Action Today: Empower your bank and your SME clients with Strands Compass – the future of digital banking solutions. Contact us now to learn how we can transform your relation with SME customers.

Contact us now to learn how we can transform your relation with SME customers.



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