Catalyzing unified SME banking and lending in Philippines: delivering business needs with lower cost to serve

The digitalization of business banking and lending has lagged behind retail banking, forcing SMEs to contend with ineffciencies and fragmented experiences. This IDC primary research report examines the adoption of digital banking among SMEs in seven Asian markets, with a focus on the Philippines. It offers actionable insights and benchmarks to help financial institutions create seamless, secure, and unified SME banking and lending solutions—while reducing the cost to serve. 

SME owners, who are both business operators and individuals, increasingly seek a holistic view of their nancial ecosystem. The research reveals that 85% of SME leaders in Asia prefer a single banking partner to meet all their nancial needs. In the Philippines, 76% of SMEs share this preference, with 60% seeking comprehensive end-to-end banking solutions to unify processes across business lines. Additionally, 16% value banks that reuse existing data and banking history to streamline both retail and SME banking services. 

This IDC Analyst Brief #AP7325Philippines November 2024 is commissioned by Backbase.