The next step for small businesses is to uncover the value behind the numbers.
As the global economy continues to stagnate, small and medium-sized enterprises (SMEs), no matter where they are located in the world, will continue to face an uphill climb in 2024. The International Monetary Fund predicts that the GDP growth rate of emerging and developing countries will decline from 4.1% in 2022 to 4% in 2023 and remain at 4% in 2024, while the GDP growth rate of developed countries will rise to 2.6% in 2022. % to 1.5% this year. In 2024, it will be 1.4%.
Small businesses are expected to face stronger headwinds than larger companies amid the economic downturn. Large companies tend to have balance sheets that can weather the knock-on effects of challenges such as the Russia-Ukraine war, the current Middle East conflict, rising energy prices, tight monetary policy, and the suspension of government pandemic aid. . For small and medium-sized enterprises, the stinginess of capital markets and the collapse of free trade in favor of national independence in many countries make growth even more difficult.
This does not bode well for the global economy. According to the OECD’s October 2023 Small and Medium Enterprises and Entrepreneurship Outlook Policy Report, around 99% of businesses around the world are SMEs, accounting for 60% of business value added. Small businesses are critical “to drive a resilient, inclusive and sustainable recovery,” the report’s authors warned.
Bridging the digital divide
One of the most important lessons the pandemic has taught businesses is the need to digitize, from improving online and mobile access for clients to virtualizing an organization’s infrastructure. The authors of the OECD report note that social media and cloud computing have become mainstream for most small and medium-sized businesses, with the use of the latter doubling over the past six years.
It’s important to uncover the value hidden in your data. A World Economic Forum survey of 111 small and medium-sized enterprises across 42 countries and 21 industries found that 74% are struggling to maximize the value of their data investments. More than half (55%) of those surveyed experienced difficulty finding data, and slightly fewer (54%) experienced difficulty maintaining data.
“The biggest acceleration of digital adoption in recent years has been in the implementation of big data analytics, even at low levels, and the purchase of cloud computing services,” says the Department of Small Business and Entrepreneurship Performance, Policy and Mainstreaming. says Sandrine Cargroch, Director of . His 2021 OECD Report from the OECD Center for Entrepreneurship. “The adoption of business intelligence and supply chain management software has made little progress, especially among small businesses.”
However, with the development of open banking standards, the sharing of application programming interfaces (APIs), and the rise of the sharing economy, the value of small businesses’ internal data is beginning to increase. That’s why choosing the right banking partner is more important than ever.
Businesses need to balance access to the cheapest capital with the added value of technology and other services that banks can provide. This year’s World’s Best SME Bank Awards recognize financial institutions that outperform their competitors in serving their small business customer base. —Robert Daley
Methodology: Behind the Rankings
editor of global financeselected the World’s Best SME Banks 2024 winners based on a combination of objective and subjective factors, with input from industry analysts, business executives, and technology experts. The editors relied on entries submitted by banks and the results of independent research. No input was required.
The judges considered performance from April 1, 2022 to March 31, 2023. global finance We then applied a proprietary algorithm to shorten the list of candidates and arrive at a numerical score of up to 100 points. The algorithm weights various criteria for relative importance, including knowledge of the small business market and its needs, breadth of products and services, and market position. And innovation.
After the judges narrowed down their field, they applied final criteria such as global coverage, staff size and experience, customer service, risk management, product and service scope, execution skills, and use of technology. In case of a tie, judges will focus on local providers rather than global institutions. The committee also tends to favor private banks over government-owned institutions. The winners will be the banks and providers that best serve the specialized needs of small and medium-sized businesses.
BTG Pactual Empresas takes the crown
Brazilian digital bank BTG Pactual Empresas has swept the Best Small and Medium Enterprise Bank awards in Brazil, Latin America and the world for the second year in a row. The bank facilitated access to capital for micro, small and medium-sized enterprises (MSMEs), which account for approximately 90% of Brazilian companies.
Clients have access to low-touch digital channels available 24/7, while offering a high-touch experience using open banking standards and Brazil’s PIX instant payment system. For example, BTG Pactual Empresas has reduced the time needed to obtain credit to about 30 minutes for customers participating in rural credit programs, solar power and green finance, and women-owned businesses. Your newly opened SME account will be operational within an hour.
Once an SME account is opened, account holders can export banking data to standard spreadsheets, Microsoft Excel and Google Sheets, and enterprise resource planning (ERP) applications for instant reconciliation of accounts within the ERP system.
BTG Pactual Empresas offers payroll, insurance, tax and investment services, as well as additional services such as single sign-on multi-user and multi-business accounts, online invoicing, collections management, budgeting capabilities, currency exchange and digital receipts. We provide Clients can always get expert support via chat, email, WhatsApp and toll-free number. —RD
|Best Small Business Bank Award 2024
|The world’s best small business bank
|BTG Pactual Empresa
|National and regional winners
|erste group bank
|Ahri United Bank
|BNP Paribas Fortis
|BTG Pactual Empresa
|royal bank of canada
|Chilean Bank Santander
|Banque Populaire and Caisse d’Epargne
|Hang Seng Bank
|bank of ireland
|Sumitomo Mitsui Financial Group
|National Bank of Kuwait
|peru credit bank
|Bank of the Philippine Islands (BPI)
|BNP Paribas Bank Polska
|Portugal Puerto Rico
|Puerto Rico Popular Bank
|qatar development bank
|arab national bank
|Korea Industrial Bank
|Ceylon Commercial Bank
|siam commercial bank
|United Arab Emirates
|Asia Alliance Bank
|Asia Alliance Bank