Financing for Small to Medium Enterprises (SMEs) advances: crucial roles for infrastructure and coordination in the upcoming phase
In the current economic climate, characterized by high interest rates and cautious investors, new ways of capital intermediation are essential for small and medium-sized enterprises (SMEs), the backbone of the European economy. One such solution is the use of orchestration infrastructure in SME financing.
Mandya Aziz, the Chief Commercial Officer at Banxware since 2024, has been at the forefront of this revolution. Aziz has been working at Banxware since 2020, dealing with the challenges and opportunities in the SME financing market.
Despite the progress made by fintechs, many hurdles such as costs and scalability remain unsolved in SME financing. Traditional credit granting processes are based on outdated structures, resulting in slow decisions, high dropout rates, and a financing experience that doesn't fit the digital work world.
Platforms like marketplaces or SaaS solutions can forward credit requests to a network of regulated banks and institutional partners, increasing approval rates and reducing financing costs. By integrating licensed banks, regulatory requirements such as KYC and AML are directly met in the SME lending process.
The future of SME financing will be decided by who creates the best conditions for financing to be possible exactly where and when it's needed. Access to capital remains difficult for many companies in the European economy.
With rising refinancing costs and banks becoming more selective, opportunities arise for orchestrators to connect credit supply and demand more efficiently. Banxware, for instance, builds the infrastructure that connects platforms with regulated banks, enabling fast, compliant, and affordable financing for SMEs.
The infrastructure that orchestrates and seamlessly integrates credit granting into existing business processes will be central in the future. Financing offers become part of existing business processes, making it easy for companies to access capital without detours or media breaks.
Embedded providers use transaction data, behavioral patterns, and open banking information for quick and accurate decisions in SME lending. Banxware's focus is on connecting these platforms with regulated banks, enabling fast, compliant, and affordable financing for SMEs, without competing with banks but integrating and strengthening them as part of the embedded lending journey.
Orchestration infrastructure addresses several challenges in traditional SME financing. It reduces inefficiencies and delays, simplifies repayments and collections, embeds credit into business operations, reduces information asymmetry and risk, enables scalable and flexible digital lending stacks, and leverages automation and advanced technologies.
In summary, orchestration infrastructure transforms SME financing by integrating fragmented financial services into coherent, automated, and data-driven platforms. This enables faster, smarter, and more responsive credit delivery that supports SME growth and supply chain resilience in increasingly complex markets.
Mandya Aziz, as the Chief Commercial Officer at Banxware, has been leading the integration of technology into SME financing, aiming to improve compliance and enhance the finance aspect of businesses. The future of SME financing lies in the efficient connection of credit supply and demand, where Banxware's orchestration infrastructure streamlines the process, ensuring fast, compliant, and affordable financing.
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