The integration of artificial intelligence (AI) in the banking sector is transforming the way small and medium-sized enterprises (SMEs) engage with financial institutions. AI-powered solutions offer a range of benefits, from customised lending solutions and streamlined inventory management to wider market access and personalised financial advice. In this blog, we will explore the significant impact of AI in banking on SME customers, backed by real-world statistics.

AI algorithms have the potential to revolutionise the lending process for SMEs. Traditional evaluations are often time-consuming, delaying access to capital. In contrast, AI-powered credit assessment systems can analyse vast amounts of data in real-time. According to Accenture, these systems have the potential to reduce the SME lending approval process from weeks to minutes. This acceleration not only expedites the approval process but also increases the likelihood of SMEs accessing capital faster, enabling them to seize growth opportunities efficiently.

Efficient inventory management is crucial for SMEs to meet customer demand while minimising costs. AI-powered inventory management systems leverage advanced algorithms to analyse historical data, market trends, and customer behaviour. Deloitte reports that such systems can reduce inventory carrying costs by up to 20% for SMEs. By accurately forecasting demand, optimising inventory levels, and reducing carrying costs, SMEs can enhance operational efficiency, improve customer satisfaction, and drive profitability.

AI-powered platforms play a vital role in connecting SMEs with potential buyers and receivers. For instance, Alibaba’s e-commerce platform provides SMEs with access to over 700 million active buyers. By leveraging AI algorithms, these platforms match SMEs with interested parties based on their products or services. This expanded market reach offers SMEs tremendous growth opportunities. Real-world statistics demonstrate the impact of AI-powered platforms, with Alibaba’s annual gross merchandise value exceeding $1 trillion.

AI virtual advisors act as intelligent assistants, offering personalised financial advice and guidance to SMEs. PwC reports that 70% of SMEs believe AI virtual advisors can provide valuable financial insights. Equipped with natural language processing capabilities, these advisors understand SMEs’ inquiries and provide accurate real-time responses. SMEs can leverage expert recommendations on financial planning, investment opportunities, and risk management, enabling informed decision-making for long-term success.

The impact of AI in banking on SME customers is undeniable. From customised lending solutions and streamlined inventory management to wider market access through AI-powered platforms and personalised financial advice from AI virtual advisors, SMEs are empowered to thrive in the evolving business landscape. The statistics validate the transformative potential of AI in banking, with faster lending approvals, reduced inventory carrying costs, and access to a vast customer base. By embracing AI technologies, SMEs can unlock new growth opportunities, optimise operations, and drive sustainable business success.