One of the major revelations the pandemic provoked was the sharp realization that our world is more deeply interconnected than it seemed. Over the last few months, we all saw the butterfly effect in action, its effects rippling in predictable and unexpected ways.
Stay up to date with the latest Fintech Trends and Insights packaged into knowledgeable articles about everything related to data-driven business finance, global SME funding gap, lending technology and platform business models. We believe SME Business Finance will never be the same after 2020. Trends that were already set in motion have now accelerated. The internet – not Open Banking – creates new imperatives for new business models, and we believe systems of intelligence will be critical in unlocking the value creation for the future of business finance and the broader digital economy.
I’ve been living in Australia for almost 6 years and it’s been clear since the beginning that this market made a headstart in digitising finance. It’s also currently on a good path to realizing its promise on Open Banking.
How did it do it? And why does it matter?
I’ll dig into the details next, but let me start with this: observing the Aussie market reveals a powerful undercurrent pulling the future forward for fintech companies. It reveals how banks’ approach to data shapes the type of issues they’re solving – today’s or tomorrow’s – and the vastly different outlook each approach shapes.
SMEs’ lending needs have long been caught between a rock (corporate banking) and a hard place (independent non-bank lenders). It was never clearer than in lockdown that the current setup doesn’t work – neither for SMEs, nor for lenders.
From paper-based origination processes to manual work, through siloed customer information, the promise of customer-centric lending faces many breaking points that neither party can afford.
We know why SME business finance will never be the same after 2020, but what the lockdown painfully emphasized has a solution that’s both attainable and practical.