Why Small & Medium Businesses Are Ripping Up the Bank Playbook
Airwallex—yeah, the name you get when thinking of the next-gen payment playground—announced a fresh global survey that’s basically shouting, “The future of money is on the cloud!” That’s right: more than 80 % of SMBs are itching to swap their clunky old banks for slick cloud‑based financial services.
The “Why” Behind the Numbers
- 81‑plus% of SMBs worldwide feel neglected by banks. In fact, 86 % in the UK and US say they’d ditch their current provider if a software platform or marketplace offered a like‑for‑like alternative.
- These firms want services that let them do more than just weird‑looking spreadsheets: cross‑border payments, payouts, business bank accounts, foreign exchange and even treasury functions.
- When you pair that with the sheer amount of customers hitting the cloud this year, it’s a money‑making goldmine for e‑commerce, CRM, and expense‑management platforms.
What This Means for Software and Marketplace Builders
If you’re running an e‑commerce store or a CRM that helps small businesses grow, you’re now greatly timed to scoop up a new revenue stream. Think about embedding services that:
- Send money across borders faster than an email chain from your grandma.
- Open business bank accounts in a few clicks—no need to trip to a bank’s physical office.
- Turn foreign exchange into a breeze: DIY rate conversions that actual banks would charge you a sauna ticket for.
- Offer treasury‑level financial health monitoring without the big‑company headache.
Bottom line: SMBs are already on the lookout for an inclusive, flexible, and inexpensive cloud solution. Build it in, and you’ll not only be serving a hungry market, but also stacking up the profits.
Takeaway
The next wave of business finance is on the cloud, and small companies are waiting with baited breath. Hook them up, and you’ll win the race—while maybe mangling a chuckle along the way.
Cross-border payments pain stifling growth
Cross‑Border Payment Berserk: What SMBs Are Really Badging Out Of
Small‑and‑medium‑size businesses (SMBs) are spending way too much time in the “waiting lounge” when money comes in from overseas. Here’s the low‑down on why it’s a nightmare and how you can kick it to the curb.
Receiving Money From Abroad
- Ongoing delays king the card – 45 % of SMBs say payments take forever to clear. Singapore and Australia are the most stuck in this carousel, each reporting 52 % of merchants feeling the sluggishness.
- Currency conversion: the silent fee‑monster – 41 % blamed forced conversions for way too many transaction extra charges. UK‑based SMBs? They’re feeling the pinch with 45 % saying it’s a deal‑breaker.
Payouts to Vendors, Suppliers & Staff
- Fast‑track? More like “slow‑track” – 48 % of SMBs complain about the lag when they send money out. Australia’s in the hot seat with a staggering 58 % hit.
- Mixed‑method chaos – 47 % think juggling various payout ways and currencies is a headache. Singapore pushes that to 57 %, that’s a lot of juggling shoes.
Bottom line: old‑school, hand‑coded payment flows just don’t cut it when you’re doing business internationally. The good news? A single, end‑to‑end payment platform can turn this torturous bumpy ride into a smooth glide. Upgrade your payment stack, and you’ll be laughing all the way to the bank.
Confidence in software platforms to streamline financial services
Still Banking With Banks? The SMBs’ Big‑Oh Yeah
Picture this: 81 % of small‑and‑medium enterprises (SMBs) across the globe still trust traditional banks for their money matters. But here’s the twist – those banks often treat SMBs like a one‑size‑fits‑all cookie, forgetting that a coffee shop, a niche e‑commerce site, or a local construction firm all have different cash‑flow cravings.
Cash‑Flow: The Silent Killer
Outdated payment systems can turn a boom‑in the sales cycle into a cash‑flow crisis. Imagine waiting a week for a client’s payment to hit your account, while your rent and supplier bills scream: “Pay up!” That’s the real drama.
Because of this, 77 % of SMBs are either on the fence or actively hunting a new payment partner. The hunt is real and the stakes are high.
Banking Blues: The Numbers Speak
- 44 % of respondents feel that traditional banks are the least likely to meet their needs.
- 64 % think that software platforms or marketplaces with embedded financial services could be the reset button.
- And the most excited? Australia – 76 % are craving services that speak their industry language.
Smaller, Softer, and Tailored
What SMBs are craving is a streamlined experience that lives and breathes their niche. That’s a job for vertical software providers, who can stitch financial tools right into the workflow you already know.
Career in a Cash‑Flow Crisis? It’s Time to Mix It Up
So, if you run a boutique store, a tech start‑up, or anyone who doesn’t have an accounting guru on staff—consider swapping the bank’s bland solution for a tailored platform. The results? A smoother cash flow, fewer headaches, and a wallet that’s happy enough to brag about your growth.
SMBs will pay more for a one-stop-shop provider
SMBs are Hooked on “All‑In‑One” Software for Money Matters
New research shows that the majority of small‑and‑medium businesses (SMBs) in China (93 %) and the United States (88 %) are looking to their current software providers for financial services. The U.S. even tops the list by a hair— but Australians are trailing behind at 66 %— because twenty‑nine per cent of Australian SMBs already use their software platform for extra cash solutions.
Why the Gap?
- China – 91 % are ready to throw more cash at a provider that bundles finance and everything else they need.
- United States – 76 % willing to pay a bit more for a single‑stop shop that can keep up with international growth.
- Australia – Lower demand, but 19 % already getting “invested-in” from their software partners (the highest share in the study).
World‑Wide, but Let’s Talk Shopify for a Second
Shannon Scott, SVP, Global Head of Product at Airwallex: “Digital‑first SMBs need cross‑border payments that slide smoothly – banks just aren’t hitting the mark. Software platforms and marketplaces are the real MVPs here; they’re hands‑on with the day‑to‑day business of their customers. Think eCommerce marketplaces looking to loan their sellers – if you can see the sellers’ payment flows, you can offer pre‑approved funds in a snap and keep risk low. That’s genius!
Numbers Game
Data shows that embedding financial services in SaaS tools dramatically lifts a company’s valuation and market cap. In plain terms: software providers who mix finance with their core products can unlock new revenue streams for themselves and give their customers a smoother experience.
Why It Matters for You
Simply put, if your business uses a SaaS solution to manage sales, shipping, or inventory, it could also use the same platform to handle the money side of things: payments, loans, fraud protection, and more. It’s the ultimate “all‑in‑one” growth hack. The top three markets (China, U.S., and Australia) already are in the skincare world that’s ready to roll this out; the rest are behind but not far behind.
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