Publication of a white paper "Microenterprises, macro challenges for banks and fintechs"

February 6, 2020 | Press Releases

Paris, the 06 February 2020

France FinTech and the cabinet Roland Berger present the results of their study “Microenterprises, macro issues for banks and fintechs”, results drawn from quantitative analyzes and interviews conducted with around thirty players directly linked to microenterprises. Indeed, if the first wave of innovation in the field of finance was characterized by the establishment of banking offers for individuals, efforts are now focused on adjusting solutions adapted to specific needs. professionals.

 

Aimed at so-called “traditional” banks as well as fintechs, this study aims to initiate reflection on the processes to be put in place for those wishing to offer banking offers adapted to this strategic and highly profitable target.

“The VSE market is the object of all intentions and is now a preferred investment theme in our ecosystem. Entrepreneurs are in fact looking for new services, adapted pathways and responsiveness. This is an extremely diverse clientele, with expectations and frustrations that it is essential to hear, from whatever shore they are spoken to”. Alain Clot, President of France FinTech

Some numbers:

  •  In France, 815 companies were created in 257;

  • In total, 5,7 million microenterprises are listed;

  •  The main reasons for the dissatisfaction of microentrepreneurs are:

o the lack of availability of advisers;
o low customer knowledge linked to high turnover among business managers; o the arduous administrative procedures.

 

Microenterprises employ 1 in 5 workers in France, a guarantee of considerable economic dynamism for the country. Important in terms of its size and growth, this market therefore represents a significant pool of opportunities for the various financial players.

 

The market potential and the identification of the specific needs of microenterprises have led to the emergence of an innovative offer partly driven by fintech. In this area, they have been able to capitalize on lessons learned from the individual market, the gradual change in the profile of entrepreneurs, the possibilities offered by technologies, the use of data and regulatory changes favorable to the emergence of new practices.

 

“The microenterprise market is a very attractive market in terms of its size, turnover rate and margin levels. It offers a competition ground coveted by both fintechs and traditional banks. The changing expectations of this customer segment are favorable to innovation and the various players in the market all have assets to put forward.” Christian Heinis, Partner at Roland Berger

 

The long-term establishment of fintech in the financial services landscape has prompted traditional players to set up innovative products capitalizing on their historical strengths (“trust, human values, infrastructure”) and their significant investment capacity.

However, designing offers for microenterprises is complex. This segment is made up of deeply heterogeneous structures that need flexible and personalized solutions. Moreover, microentrepreneurs are looking for everything at the same time;

  • the support and guarantee offered by traditional banks to professionals;

  • the simplicity and fluidity of the tools developed by fintechs for individuals.

Faced with these hybrid requirements, all financial players must continue to adapt their offers if they want to retain or conquer market share in this segment; under penalty of seeing foreign challengers or the GAFAM gradually mesh the ground.

The race is on. The banks must continue the actions already in place and operate in a more agile manner to adapt to the changes underway, the fintechs for their part, are responsible for convincing larger companies (SMEs, ETI) of the efficiency of their services, all on the same ground that can be the laboratory of a “coopetition” generating innovation!

Aboutand Roland Berger
Founded in 1967, Roland Berger is the first general management consulting firm of European origin. Established in France since 1990, the Paris office brings together nearly 300 employees and advises the largest international companies (industry and service) as well as public institutions, on all their issues, from strategic advice to operational implementation. : new business models and leadership models; mergers and acquisitions, private equity and restructuring; support on major infrastructure projects. It strives to offer innovative solutions, with particular attention paid to obtaining concrete and measurable results. Aware of the strong challenges linked to digital technology, Roland Berger initiated Terra Numerata, a unique and open ecosystem of partners that allows us to offer the best of digital to its customers.

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Press contacts
Caroline law
caroline.law@rolandberger.com / 01 53 67 09

 

About France FinTech
Created in June 2015 on the initiative of entrepreneurs, France FinTech is a non-profit association whose mission is to promote excellence in the sector in France and abroad and to represent French FinTechs to public authorities, the regulator and the ecosystem. It brings together French fintech, insurance and regtech with the potential to become European or global leaders. All the players wishing to support this movement and be recognized as an integral part of the ecosystem have gathered around the start-ups: technology companies, investment funds, law and consulting firms, banks, insurers, industrial companies, public or associative entities, etc. The association is chaired by Alain Clot, and Kristen Charvin is its General Delegate. The Bureau brings together the founders of ANAXAGO, BANKIN, EPSOR, FLUO, LEDGER, LYDIA, OCTOBER, XAALYS, YOUNITED CREDIT.

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