SME’s Are More Connected Than Ever

We continue our series on the results from our latest SME surveys. Today we look at the digital trends of SME’s. On average, around 13% of firms are digital luddites – meaning they hardly use digital at all, but the rest are digitally aligned. This means they prefer using a mobile device, are likely to be using social media, and to use cloud based services.

We separate these digitally aligned firms into those who are natives – meaning they have grown up digital, and those who have migrated to digital. Natives have a much higher propensity to adopt new technology, and are much more interested in Fintech offerings.

Things get interesting when we look at the segments.

nov-16-technoThis is reflected in their preferred channel for banking. More than ever are now wanting their banking delivered via apps, or smart phone. Bank branches are important, for a minority, mainly because of the need to handle cash. The channel mix does vary by segment.

nov-16-techno-channelMany firms are now connected 24×7, but this does vary by segment. Around 20% are hardly online at all. This highlights the need to bankers to have an appropriate set of channel strategies for their SME customers. Many do not.

nov-16-techno-timeMore are using smart devices as their main device. Some still use personal computers.

nov-16-techno-deviceAwareness of cloud delivered services is increasing, and once again we see some interesting variations across the segments.  Digital natives are most comfortable.

nov-16-techno-cloudFinally, awareness of Fintech alternatives to the banks continues to grow. Again, digital natives are most comfortable and most likely to consider applying for funds from non-conventional lenders.

nov-16-techno-fintech   Next time we will look at business confidence, which varies across the segments, and across states.



Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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