Visa: SMEs Need Unique Product to Create 90% of Digital Jobs by 2030
Emma Okonji
Following global projections that small and medium enterprises (SMEs) will account for 40 per cent of Gross Domestic Product (GDP) in emerging markets, and are expected to create at least 90 per cent of new jobs by 2030, the Country Manager, Visa Nigeria, Mr. Andrew Uaboi, has said SMEs will need unique product and solutions to achieve such projections.
According to global predictions, SMEs make up 90 per cent of businesses and account for more than 50 per cent of employment. In emerging economies, they account for 40 per cent of GDP and are expected to create at least 90 per cent of new jobs by 2030, but Uaboi however said COVID-19 pandemic accelerated the rise of SMEs and drove the growth of entrepreneurship in the already expanding gig economy as people searched for new ways to make money due to changes in personal circumstances such as job losses and salary reductions.
According to him, “As the rise of SMEs and the gig economy continues, they offer a large customer base opportunity for both issuers and acquirers to tap into. However, SME needs can’t be met using a traditional Customer Value Proposition (CVP). They have a number of unique characteristics and need a product which sees them as not only a consumer, but also as merchant, small business and invoice payer. This means that if traditional banks want to tap into the SME market, they need to learn lessons from neo bank and Fintech entrants, who have created tailored CVPs.”
Giving instances how banks can create a CVP that can attract SMEs, Uaboi cited the recent opinion paper titled: ‘The Rise of Small and Medium Sized Enterprises (SMEs)’, where the Visa Consulting and Analytics team explored six keys to unlocking the SME opportunity, adding that Visa’s suite of capabilities, powered by insights from VisaNet data, can be leveraged with Visa’s network of partners to help unlock SME potential by designing a CVP that is not only tailored to SME needs but also provides a best-in-class experience.
Uaboi said SMEs would be looking for a product that adds value and makes their lives easier, which means offering quick underwriting and approval, a streamlined user experience and a focus on positive results.
“Using Visa’s credit scoring solutions, go-to market and payment strategy knowledge and customer experience and lifecycle management plans can support banks with offering a product that runs smoothly and benefits SMEs,” Uaboi said.
