Find out what SMBs are looking for and why the battle for eyeballs has intensified.
In this context, the term ‘the battle for eyeballs’ is used to describe the competition between financial providers to gain and retain the majority share of SMB attention in the ever-evolving digital marketplace.
In 2019, banks and accounting platforms were head to head in the battle for eyeballs. It became clear that financial service providers who offered the best functionality and UX would win out, but two years on, how has that environment evolved and is there any sign of a victor?
Competition is heating up
One thing is clear – the battle for eyeballs has intensified, with financial service providers still fighting for the attention of small business owners. As products compete to be the go-to option for SMBs, there has been considerable consolidation between product suites and sectors. The recent rebranding of Codat client Clearbanc is a prime example.
Now Clearco, the e-commerce investor announced a rebrand to reflect its evolution from a source of efficient capital for founders to a broader platform of growth products and services.
“The move from Clearbanc to Clearco really signals our move beyond capital. “We’ve invested US$2 billion in 4,500 plus companies, and we’re building a product suite to support founders that goes far beyond funding, based on what they’ve told us they need most. Our new name reflects our broad commitment to partnering with founders to build thriving businesses.” – Co-Founder and President Michele Romanow
The trend to encapsulate a broader financial platform is evident in the commerce market too, with point of sale terminal providers increasingly offering online payment services (you can learn more about this topic in our latest whitepaper). And with non-financial companies beginning to offer products such as loans, payment plans and credit cards, the recent rise in embedded finance further compounds the importance of functionality and intuitive UX design.
Why has the need for integrated products grown?
The answer is simple – SMBs now expect them. As the benefits of interoperability have led to integrations becoming a prominent feature, SMBs are now most likely to gravitate towards the place where they are able to easily connect as many apps as possible. Therefore, the winners of the battle for eyeballs will be those financial providers and services who are the most connected.
What’s the benefit?
While the benefits of a fully integrated financial platform may be obvious for SMBs, there are many advantages for financial service providers as well. Owning an entire customer relationship can only increase the chances of long term customer loyalty, by being able to facilitate lending and credit opportunities, alongside accounting management, payroll tax software, and budgeting tools to help all these elements work together in harmony.
But it doesn’t have to end there; with the ability to share financial information easily between institutions, insurance marketplaces can offer policies tailoring to small businesses and niche industries more easily. There is also the opportunity to offer SMBs access to market trends, data and networks to help them gain both support and connections to grow their businesses.
And the best way to achieve all of this? By working with partners like Codat, who are able to provide a range of integration tools to save time, money and enhance a customer’s experience in a matter of minutes.