Artificial Intelligence and Financial Cooperation for Small and Medium sized Enterprises

Small businesses have long been the backbone of the global economy, and recent developments have highlighted the importance of this field. Large financial institutions and technology companies are more focused on small and medium-sized enterprises. Citigroup is seeking to increase revenue by adding small customers, with the goal of doubling its commercial banking business. According to reports, the bank is known for serving only its largest customers and has now expanded its focus to small and medium-sized enterprises with annual revenues between $10 million and $3 billion.

Firstly, Sezzle, a buy and pay company, and Liberis, an embedded financial platform, have teamed up to help small businesses in the United States obtain financing. This collaboration, centered around Sezzle Capital, aims to help small and medium-sized enterprises in the United States and even Canada obtain financing without sacrificing equity. When it comes to reimagining small and medium-sized enterprise payments and transforming them into growth engines, the Senior Vice President of Merchant Services at American Express has only one suggestion: automation. In a recent conversation centered around the latest B2B and digital payment tracking series research findings, produced in collaboration with PYMNTS Intelligence and American Express. The right automation solutions or the right partners can help businesses overcome current payment issues and gain tangible benefits.

Secondly, artificial intelligence is far from the futuristic concept it once was. This technology has now become a reality and is completely reshaping the industry. The Consumer Financial Protection Bureau's regulation requires lenders to collect demographic information of small business borrowers, which crosses another legal barrier as a federal judge rejects a challenge supported by the banking industry that found the rule's data collection methods flawed. The British trade union hopes that the country's banks will be prepared to retain employees who have lost their jobs due to artificial intelligence. At next month's UK Trade Union Congress, labor organizations will call on lending institutions, insurance companies, and accounting firms to be prepared to help millions of employees who may lose their jobs due to artificial intelligence.

On the other hand, the PYMNTS Intelligence Report on Payments: Digital Payments Improve Cash Flow and Customer Experience explores how digital payments can reshape accounts receivable and provide insights into reducing accounts receivable turnover days and establishing stronger business relationships. The report states that despite high costs and low efficiency, 75% of organizations still use paper checks. The manual processing of checks can lead to slower transaction speeds, increased likelihood of errors, and prolonged DSO, thereby damaging the company's cash flow and financial stability. Abandoning paper and achieving digitalization is not an easy task, and PYMNTS explains why effective change management is an important component of B2B automation.

In addition, medium-sized enterprises typically have more resources than small and medium-sized enterprises, but invest less than large competitors. Relatively small but carefully considered investments in artificial intelligence can help them rapidly develop and scale up. The mid sized enterprise technology trend report found that mid sized private enterprises prioritize technology investments that shorten the time to value realization, but their innovation speed is incredible, something we have never seen in previous surveys.

Overall, in today's constantly evolving business world, the use of artificial intelligence is not just a trend. This is a fundamental change that is shaping the future of various industries. It is rapidly changing businesses of all sizes, but particularly beneficial for medium-sized enterprises.