Historical SME banking developments have always been associated with technological advancements, but still, the business owner finds themselves scrambling to solve things in their own way.
Rather than employing digital banking services for SMEs to address their needs, the business owner lands up testing different technological solutions without understanding the root issues they aim to solve.
This trial-and-error approach takes time, eats into resources, and sometimes leaves business owners dissatisfied with the solutions they have been deploying, since these solutions have not really addressed their fundamental challenges. For Kenyan entrepreneurs, solutions for digital banking for SMEs should eliminate, not increase, complexity.
For SMEs in Kenya, digital banking goes beyond the aspect of convenience. Digital banking for SMEs is a major driving force in the sector because it allows financial activities to be simplified, and the business can focus on things that matter most, like value creation, extension of reach, and economic momentum.
Try to envision an average day in the life of an SME businessman, grappling with making payments to suppliers, creating payroll, and answering client queries, all on various platforms.
Many would already be falling behind schedule and stuck in queues and bottlenecks. This is the experience of most SMEs that do not avail themselves of proper technology-enabled banking solutions designed specifically for SMEs.
Importance of Digital Banking Solutions for SMEs
The Growing Pains Of Success
Based on the statistics provided by the Kenya Association of Manufacturers, over 60 percent of SMEs experience cash flow problems associated with late payment.
Without access to real-time financial information, SME leaders are left making decisions based on incomplete or stale data. The implication here is the need for effective digital banking solutions for SMEs that would facilitate informed decision-making.
Creating a solid foundation in finance
A robust financial system is crucial for sustainable development. Digital banking financial solutions for SMES ensure sustainable development by:
- Automating repetitive work such as payments for employees and suppliers
- Offering visibility into cash flow and financial position in a timely manner
- Providing business owners with anywhere, anytime access to manage their accounts
With the increase in the African Continental Free Trade Area (AfCFTA), digital banking solutions for small and medium-sized enterprises are now even more essential.
International trade business environments require solutions that can handle international payment transactions and multiple currencies to ensure business expansion beyond local settings.
Equity Online for Business
Among the platforms transforming SMEs’ operations in Kenya, Equity Online for Business is worth highlighting, having been created with the specific intent of implementing online banking options tailored for SMEs.
Previous names of this platform should be remembered, having been known by ‘EazzyBiz’, aimed at addressing several SMEs’ operational issues by allowing automation processes, compatibility with other established platforms, and real-time information on finances.
Such features as bulk payments, cash flow management, and international transactions make Equity Online for Business an attractive solution for SMEs seeking scalable growth.
In the larger scheme of operations, online banking features for SMEs give the business owner the ability to make informed financial decisions with the analytical data offered.
With the ability to seamlessly interface with other financial systems, Equity Online for Business helps SMEs scale their businesses without having to change their existing business processes, making it both cost-effective and future-ready.
With the increased interconnectedness of the Kenyan business environment, the revitalized emphasis on digital banking solutions for SMEs represents a paradigm shift in this space. These SMEs are positioned to thrive in the digital economy due to their utilization of this technology.
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