How can Fintech and bank collaborations shape the future of SME businesses?

SMEs being the major contributor to an economy’s GDP, employment, and growth, especially in developing nations.

Despite being major contributors, SMEs face many challenges in their day-to-day banking, accounting, and operations.

To solve the pain point of SMEs, banks and fintech have joined hands to build tailored-made financial services for SMEs. Where in partnership they use the bank’s data and experience, fintech digital innovation to build customized solutions for SMEs. 

Fintech and banks are not competitors anymore, now they are open for the partnership to improve customer experience, broaden the customer base, also to reduce their cost and operational efficiency resulting in higher revenue.

Fintech and bank collaboration can lead to many benefits for SMEs:

Digital banking

Earlier it was tough for small businesses to deal with traditional banks and their tedious procedures.

But now with the emerging partnerships between banks and fintech, the process has been revamped. Now, SMEs do not need to visit the bank for their daily banking requirements because with the technology of fintech and the experience of banks everything has been built according to the solutions of the business.

For example – like in minutes a business can open a current account with any bank with minimal documentation, KYC will be done online, utility payout, and many more.

Online payments made easy

Now businesses can provide various payment options to their customers, all these have been possible due to the fintech and bank collaborations.

Various payment alternatives increase the conversion rate for SMEs and help SMEs in managing their business liquidity position.

On the Hylobiz platform, an SME can accept payments from its customers through various payment modes be it cheque, cash, net banking, UPI, debit/credit card, etc.

Also, the transactions are settled on a real-time basis which improves the business decision making.

Alternative financing

Many businesses fail and are not able to operate in the long run and most of the time the reason for the failure is mismanagement of finances.

Also, businesses need financing to meet their working capital requirements, to meet seasonal targets, etc and by keeping this in mind finance technology and banks operating in partnerships can deliver more features to their customers, and also, they can develop various alternative products for businesses such as cash flow based lending, invoice discounting, SME credit card, etc.

With this SMEs enjoy better liquidity and banks and fintech can generate new revenue streams for them.

At Hylobiz API marketplace also a business can get access to working capital loans and invoice discounting services built in partnership with major lenders.

Automatic accounting and reconciliation

Fintech offers connected banking services in partnership with banks which drives automation in the accounting and reconciliation of a business.

With connected banking, business accounting and reconciliation both are done on a real-time basis, which saves many man-hours and costs of a business. Also, all the data are reconciled on a real-time basis which helps a business in accessing its financial health.

Digital lending

Digital lending is something that has been disrupted by fintech by collaborating with banks.

Digital lending has made it possible for a business with no credit history to avail of loans, also everything is digital and transparent.

Also, a business can choose the repayment according to their need, and also the sum is disbursed within hours without any bank visits.

Hylobiz also makes business loans accessible to businesses at very low-interest rates.


With the partnership of banks and fintech, SMEs are also able to deliver personalization to their products which improves customer experience and trust in their business.

Also, businesses enjoy the flexibility and can scale their product to a huge audience.

Real-time business insights

This convergence between banks and fintech has made it easier for businesses to keep a track of their expenses on a real-time basis.

This gives a broad idea to a business, where its money is going, where it needs to cut the cost, and also based on this business can form their decisions to strategize their cost control process.

With Hylobiz  small and medium businesses can simplify their business by :

Automating their collection and payables journey: A business can collect payments from their customers and can also pay to their vendors on time, avail multiple payment options while at the time of paying and accepting both.

Getting access to real-time cash flow control: All the transactions are synced on a real time basis, automatic reconciliations are done so a business can get access to real-time cash flows.

Scanning your invoices from your existing ERP

Sending automatic payment reminders

At Hylobiz platform a business can easily integrate their existing ERPs without any hassle, also there is no set-up cost.

With Hylobiz businesses can keep a track of their business by accessing the dashboard in real-time where business financial health is displayed in detail. 

Also, Hylobiz offers alternative financing options to small businesses by operating in partnership with Bajaj finserv and Neogrowth credit private limited.

Stockhouse is a place where you can manage your inventory digitally on Hylobiz platform, where you can keep a track of your inventory, also you will get reminders when your inventory stock goes low below a certain level.

Hylobiz helps a business in many ways, which results in high efficiency and reduced administrative cost for businesses. With Hylobiz a business also enjoys collection efficiency and enjoys greater liquidity as well.

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