Small and medium-sized businesses (SMBs) are often faced with insurmountable challenges when it comes to accessing financial services. On the other hand, financial service providers frequently struggle to develop a deep understanding of SMBs’ needs by industry and life cycle status. This is an ongoing, push-and-pull dilemma that the industry experiences.
Keep in mind that SMBs are a diverse group, encompassing a wide range of industries, life cycle stages, and financial needs. An SMB in the startup phase may have vastly different financial needs than an established SMB that is looking to expand its operations. Similarly, an SMB in the manufacturing industry may have different financing needs than an SMB in the service industry. This diversity makes it difficult for financial service providers to develop a one-size-fits-all approach to serving SMBs.
The biggest challenge that financial service providers face is the lack of reliable data on SMBs. Unlike large corporations, SMBs may not have a long history of financial performance, making it challenging for financial service providers to assess their creditworthiness accurately. Additionally, traditional data sources such as credit scores and financial statements may not paint a complete picture of an SMB’s financial health.
To overcome these challenges, financial service providers must see the bigger picture of SMBs’ needs by industry and life cycle status. They can do this by investing in technology and data analytics tools that enable them to gather and analyze data from multiple sources. Tarci, a continuous intelligence platform that generates dynamic SMB data, has been at the forefront of challenging obsolete methods and outdated data-gathering practices with its cutting-edge solutions. Just recently, the company announced the launch of Tarci for Financial Services, an advanced new suite of SMB data modules designed to inform sales, marketing, risk, and retention strategies for a variety of financial services.
“The new Financial Services Module Suite is the result of a year-long collaborative work between Tarci and data teams in major banks and financial institutions,” says Leetal Gruper, Tarci Co-founder and CEO. “It’s a great feeling because we know we’re helping our clients better serve their clients, and that’s a win for everybody.”
Tarci for Financial Services’ Range of Individual Data Modules
Tarci has developed a range of individual data modules that can identify SMBs that require specific financial services due to various catalysts and life cycle events. These data modules are based on accurate and up-to-date SMB profiles combined with data-derived insights.
Tarci’s data modules include business lines of credit for SMBs that require uninterrupted cash flow, business term loans for growing SMBs that require a significant injection of capital, and merchant services for SMBs with changing payment needs. Tarci also offers foreign exchange services for SMBs with new or increased business outside their domestic market and checking and savings options for established or new businesses with varying banking needs.
Additionally, Tarci provides new and established business credit cards, travel rewards cards, mass payments solutions for high transaction volumes, and accounts payable automation for SMBs with complex accounts payable. Tarci also supports steady and healthy SMBs that are considered recession-proof and have high lifetime value (LTV).
In conclusion, developing a deep understanding of SMBs’ needs by industry and life cycle status is a significant challenge for financial service providers. The diversity of SMBs, coupled with a lack of reliable data, makes it difficult to assess their profiles accurately. However, by investing in key players like Tarci, financial service providers can better serve SMBs and help them access the financing they need to grow and thrive in today’s cutthroat business world.
