Friend or foe? SMBs turn to new technologies like AI and digital payments for growth
- We delve into two key areas where financial firms recognize SMBs' strong inclination to invest to tackle their challenges.
- SMBs are investing in AI and digital payment solutions, with potential intersections, as highlighted by industry leaders in financial institutions and firms focused on SMB services.
With the advent of advanced technologies and digitization, small and medium-sized businesses [SMBs] are seizing investment opportunities to secure their share of the market, with the growing support from financial firms that cater to their business needs.
We delve into two key areas – emerging technology and digital payments – where banks and financial firms recognize the SMB community’s strong inclination to invest to tackle their challenges, as well as the complexities they may encounter during this transition.
1. SMBs consider emerging technology
When it comes to emerging technology, AI, in particular, has captured the interest of SMBs, with many keen to invest in this area. Research shows that the largest of small businesses are more excited about AI (33%) than product development (25%), social media (28%), and standing out among competitors (27%).
Gina Taylor Cotter, EVP & GM, of Small Business Products at American Express noted that small businesses’ interest in advanced tech solutions originates from their focus on expansion, hiring, and productivity tools to stay competitive.
“As businesses scale up, business owners often look to technology to help temporarily fill in gaps while they assess long-term needs,” she told Tearsheet.
SMBs’ interest in AI is also partly because the upgrade can serve as a differentiating factor for businesses that are quick to integrate it into their operations.
“The main way that small business owners plan to use AI is to differentiate themselves from competitors, while also streamlining bookkeeping, payroll, and hiring efforts,” noted Sharon Miller, President and Co-Head of Business Banking, at Bank of America.
In Tearsheet’s inaugural working group, centered on creating products for Gen Z, participating executives explored the technological obstacles confronting financial institutions. These hurdles range from outdated legacy systems to a need for more alignment between technology and the preferences of different generations.
Although not identical, a comparable ambiguity confronts SMBs.
