Small and medium-sized businesses (SMBs) are the backbone of many economies worldwide, and they have unique needs when it comes to financial services. However, financial service providers often fail to understand these needs, and the lack of comprehension can lead to missed opportunities for a) the SMBs and b) the financial service providers themselves.
One of the primary reasons why financial service providers must understand SMBs’ needs is that the market is highly fragmented. Unlike larger enterprises, SMBs are much more diverse in terms of their industry, size, and financial needs. This fragmentation makes it challenging to develop one-size-fits-all solutions that will work for all SMBs.
Moreover, the high turnover rate in the SMB market means that many businesses start and fail every year. According to a recent report, around 20% of small businesses fail in their first year, and 50% fail within five years. As a result, financial service providers need to be able to quickly identify and adapt to the changing needs of SMBs, and this requires a deep understanding of the SMB market.
Unfortunately, many financial service providers rely on typical data analytics methodologies that are not effective in the SMB market. These methodologies often rely on data from large enterprises, which may not be relevant to SMBs’ needs. For example, large enterprises may have dedicated financial teams and access to sophisticated financial tools, while SMBs may not have the same resources. This means that financial service providers need to develop new methodologies that are specifically designed for the SMB market.
To fill this void, Tarci, a continuous intelligence platform that generates dynamic SMB data, has recently launched its latest data suite, Tarci for Financial Services. This new suite of SMB data modules can provide valuable information for sales, marketing, risk, and retention strategies in the financial services industry. These modules use current and precise SMB profiles, along with insights obtained from data analysis, to identify SMBs that may require specific financial services due to various catalysts and events occurring throughout their lifecycle.
How does Tarci for Financial Services work?
Tarci’s continuous intelligence engine utilizes various external data sources to generate dynamic profiles for small and medium-sized businesses (SMBs). These profiles are updated every week to ensure accuracy and relevance. Tarci not only tracks changes in these profiles but also identifies any related trends in the market. This innovative approach to analyzing SMB data enables Tarci’s clients to respond quickly to changes in real time. It reflects the constantly evolving nature of business activity in the marketplace and provides valuable insights to help businesses stay ahead of the curve.
The Tarci for Financial Services suite currently offers a range of data modules to support various business needs, with plans to expand in the future. These include options like lines of credit and term loans for small and medium-sized businesses (SMBs) looking to maintain cash flow or invest in growth. Other modules like merchant services, foreign exchange services, and checking/savings accounts cater to businesses with unique payment, banking, or international needs.
Additionally, there are various credit card options available to new and established businesses, including travel rewards cards, and tools like mass payments and A/P automation for managing transactions and vendor payments. Finally, the suite also includes resources for recession-proof businesses with a high lifetime value.
“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.”