What’s the role of challenger banks in fostering financial inclusion? Generally speaking, access to finance is one of the big hurdles to overcome for startups and SMEs. However, since the 2008 financial crisis, access to debt and equity has exponentially grown thanks to the combination of the technology behind e-commerce platforms, social media, data, and crowdsourcing.
The emergence of fintech has been game-changing as also the landscape of business banking has been transformed since then. For example, experts from Know Your Money, the independent financial comparison website, reckon: “SMEs are no longer limited to using a traditional high street bank for their business banking needs, like they once were, as a range of challenger banks and alternative finance providers have emerged. They compete with the established names and give businesses more options to choose from to manage their finances.”
In other words, they are playing a pivotal role in facilitating access to finance to entrepreneurs and SMEs alike.
Challenger banks give businesses more options to choose from to manage their finances.Tweet