Key global digitalization trends for SMBs
An evolutionary shift is transforming the SMB ecosystem
Small and medium sized businesses (SMBs) — which account for 90% of global businesses and more than 70% of the global GDP¹ — have continued to adapt to digital transformation over the last few years.
Global market projections for SMBs²
SMB B2B e-commerce market size (projected by 2027)
SMB embedded finance market size (projected by 2025)
SaaS spending by SMB (projected by 2026)
E-invoicing revenue (projected by 2027)
SMB T&E spending (projected by 2025)
Embedded insurance for SMBs (projected by 2027)
A profusion of new digital products and platforms has helped to propel this evolutionary shift by providing solutions tailored to the needs of specific SMBs operating across a broad range of markets and business segments.
With so many solutions to choose from, many SMBs will likely need support to fully realize the benefits of today’s digital-first marketplace. Financial institutions that can help SMBs find the right path to digitalization will be able to differentiate themselves from competitors — and they may be able to gain a first-mover advantage in this fast-growing marketplace.
11 key digitalization trends
- B2C platform proliferation
- Exponential B2B platform growth
- SMBs become a key focus for neobanks
- SMB business platform ecosystems are expanding
- Web 3.0 offers growing opportunity
- SMBs turning to digital lenders
- E-invoicing demand is growing
- Growth opportunities for expense management
- HR and benefits providers increase support for SMBs
- SMBs need greater risk management support
- SMBs are adopting emerging B2B payment methods
To learn more about the 11 key digitalization trends shaping today’s global SMB marketplace, download Visa’s Global SMB Trends 2024 Report.
Identifying pain points and delivering digital solutions that meet the needs of SMBs
New, SMB-oriented digital business solutions continue to be created, but there are still operational challenges and lending gaps for the market to address. Significant pain points remain across the wide array of digital products and services now available to SMBs, including integration with existing accounting and business administration systems, process automation, risk management and cash flow management. This creates ample opportunity for financial institutions to develop their own strategic digital solutions specifically tailored to the needs of SMBs.
For example, the proliferation of consumer-targeted platforms led to a surge in B2C commerce during the pandemic, but unfavorable pricing and terms, stringent platform requirements and the need for more effective payments integrations remain a challenge for many SMBs. Digital underwriting and embedded finance solutions have simplified lending for SMBs, but many SMBs remain underserved and unsatisfied by intensive loan application requirements and slow decisioning processes. Additionally, many SMBs remain dissatisfied by traditional risk management solutions, which were designed to meet the needs of large corporate enterprises rather than SMBs.
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Visa can help financial institutions and SMBs chart a path toward successful digitalization
New business models, digital channels, payment forms, financial services and marketplaces are changing the way SMBs can think about growth. A more comprehensive view of the global SMB ecosystem, including the 11 key macro trends identified in Visa’s Global SMB Trends 2024 Report, can help financial institutions and SMBs better understand the platforms, products and solutions available today — and chart a strategic path forward.
To learn more about how your organization can tap into global SMB trends, contact your Visa account executive.
Sources:
- World Economic Forum, 2022. “Future Readiness of SMEs and Mid-Sized Companies: A Year On”.
- Visa, 2023. “Visa Global SMB Trends 2023 Report”
- “The big opportunity behind small businesses,” World Economic Forum, 2022
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