During his presentation at the CEE21 SME Banking Club Conference (November 25, 2021) Mantvydas Stareika (CEO at SME Bank) stressed that the number and role of SMEs are growing, making it a significant target for financing. But this is not the case in the European market. Even supply of money increases, and SMEs still are lacking funding.
Europe needs a new technological business model to extend SMEs funding, increase economic growth and deploy capital efficiently. Alternative lenders’ ability to leverage technology and provide more efficient lending services to the underserved is allowing them to penetrate the market and find success.
What are the main differences between traditional banks, and alternative lenders in servicing SMEs:
As an acceptable solution for customers, the alternative financing market is growing steadily every year.
Technology and more efficient lending services are the keys to lenders’ growth.
Another visible trend on the market is a rapid spread of the Fintech ecosystems, and the application become more and more innovative. The financial ecosystem can be a clear solution that combines the advantages of banking and non-banking financial services.
Watch full presentation: