SME Banking Solutions Driving Business
Growth with Embedded Finance

SMEs are the backbone of the global economy, making up over 90% of businesses and providing more than half of global employment. Yet, for many SME owners, banking remains a challenge. Why do so many SMEs still struggle to find banking solutions that truly fit their needs? How can modern technology, such as embedded finance, Super Apps for business, and digital onboarding for SMEs, help to change this?

SME Banking Solutions for the Modern Business Landscape

The digital revolution has changed what SMEs expect from their banks. Visa reports that 68% of European SMEs use digital banking channels. Additionally, 17% have fully integrated digital technologies into their operations. However, many banks still do not meet the needs of SMEs, especially outside Europe.

Small and medium-sized enterprises now seek flexibility, speed, and integration with their processes. The best SME banking solutions offer:

• Digital onboarding for SMEs, which can reduce account opening times by up to 85% according to McKinsey. This removes paperwork and the need to visit a branch.
• Real-time financial monitoring, helping business owners make informed decisions and avoid cash shortfalls.
• Multi-user access controls, so teams can manage payroll, expenses, and approvals together.
• Integration with accounting tools such as QuickBooks, which saves time and reduces errors.
• Green financing and carbon tracking, supporting SMEs that want to operate more sustainably.

A recent MarksWebb report showed that SMEs care about easy design, strong security, and connecting with third-party tools. In emerging markets, banks that prioritise simple security and easy navigation usually do better than those with complex features.

Here is a comparison of what SMEs want and what many banks still offer:

How Embedded Finance Is Reshaping SME Banking?

Embedded finance is changing how SMEs access financial services. By integrating banking, lending, insurance, and payments into the platforms SMEs already use, such as e-commerce, ERP, and accounting systems, banks and fintechs can meet customers where they are.

In the MENA region, 65% of SMEs prefer digital banking, and there is growing demand for Sharia-compliant embedded finance products. Saudi Arabia’s Vision 2030 has encouraged fintech innovation, with platforms like Lendo offering peer-to-peer lending to help local businesses.

In North America, despite high mobile adoption, only 35% of SMEs feel their banking needs are fully met, according to SAP Fioneer. Embedded finance is helping to close this gap by enabling instant payments, personalised lending, and value-added services through API-driven tools.

Benefits of embedded finance for SMEs:

• Faster access to credit, with automated lending and alternative scoring models using big data to approve loans quickly.
• Easier payments and collections, with integrated payment gateways and invoicing tools.
• Personalised financial products, such as insurance, export financing, and tax calculators, available within business apps.
• Higher loyalty and retention, as embedded finance keeps SMEs engaged and less likely to switch providers.

Super App for Business: The Future of Unified Financial Services

The Super App for business is becoming more popular among banks and fintechs. Unlike traditional banking apps, a Super App for business brings together personal and business banking, investments, insurance, loyalty programmes, and more in one place.

A Super App for business offers:

• One login for all services, making it easy to switch between personal and business accounts, manage payroll, pay vendors, and track expenses.
• Modular dashboards, so users can add or remove features as their business grows, from analytics to document management.
• Integration with e-commerce, ERP, and accounting platforms for a smooth workflow.
• Strong security, with biometric authentication and a consistent user experience across mobile and web.

Super Apps save time and help build customer loyalty. As banks and fintechs compete to create digital ecosystems, the Super App for business is becoming a key advantage.

Digital Onboarding for SMEs: Streamlining Access to Banking

Digital onboarding for SMEs is now essential. By automating identity checks, compliance, and document uploads, banks can onboard new SME clients in minutes. This is especially important in regions with strict regulations or where SMEs operate across borders.

Why digital onboarding for SMEs matters:

• Speed, as accounts and credit can be accessed instantly without paperwork or branch visits.
• Security, with advanced KYC and AML checks and digital signatures.
• Better user experience, as a smooth process increases satisfaction and reduces drop-off rates.

A recent client shared, “With digital onboarding, our business account was live in under 10 minutes. The process was simple, so we could focus on running our company instead of paperwork.”