Credit and finance for MSMEs: SAP Fioneer, a joint venture between technology company SAP and private equity firm Dediq, which offers financial services software to banks and insurers, on Thursday announced the launch of its tailored banking offering for SMEs. The solution will allow banks and neobanks to cater to SMEs which have traditionally struggled to access financial services that meet their needs, as the perceived risks and costs associated are deemed too high, the company said.
The SME Banking Edition solution by Fioneer connects banks to external data sources such as open banking, central company registry, e-commerce and enterprise resource planning (ERP) data, to get actionable insights to support SMEs.
“This will give SMEs clear transparency about cash flow and provide insight to the banks and enable such as smart funding options, offering more variety and increasing the number of businesses banks can serve.”
Charlie Platt, Managing Director of Banking at SAP Fioneer said, “SMEs represent the lifeblood of the economy, and it is critical that they are able to access the financial services they deserve. Through our SME Banking Edition, banks will be able to create commercially viable, unique and better banking experiences for SMEs that will help them to stay ahead in a challenging economic environment.”
Moreover, the solution enables banks to offer services beyond traditional banking products such as loans and deposits. Fioneer said banks can broaden their offering with embedded services and stronger financial advice directly for SMEs.
Launched in 2021, SAP Fioneer has over 800 financial services customers, more than 1,000 employees and is present in 17 countries across Europe, North and Latin America, Middle East and Asia-Pacific.
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“The introduction of our Fioneer SME Banking Edition significantly strengthens how banks interact with SMEs. Utilizing our proven technology, we’re facilitating banks to better serve SMEs in a dynamic economic landscape. Drawing inspiration from the B2C market, we’re empowering banks to elevate their service offerings for SMEs,” said Dirk Kruse, CEO, SAP Fioneer.
SAP’s Mid-Market Senior Vice President for Asia Pacific Japan Subramanian Ananthapadmanabhan had told FE Aspire in April last year that out of its 13,000-client base, SAP India had 80 per cent of its customers in SMB segment.