Banks ought to revise their strategies for supporting small businesses in the era of artificial intelligence, considering its potential implications.
In the ever-evolving landscape of financial services, banks are shifting their focus towards providing practical, immediate tools to help businesses thrive. One such bank leading the charge is Israel's Bank Hapoalim, which has demonstrated a strategic approach to small and medium-sized businesses (SMBs) by leveraging artificial intelligence (AI) to tackle customer acquisition challenges.
By offering more than just lending services, banks like Bank Hapoalim are transforming into builders of business. The Israeli bank's innovative AI-powered solution, launched in a short span of weeks, has delivered measurable returns for both the bank and its customers.
Naama Manova Twito, CEO of MarkeTeam.ai, highlights the opportunity this presents for direct, day-one impact for clients, particularly in the area of customer acquisition for SMBs. Here are five key strategies banks can adopt to emulate Bank Hapoalim's approach:
1. **Targeted Financing to Technology Firms with AI/Marketing Focus**: Banks can invest in companies that develop AI-powered marketing tools or platforms, providing specialized credit facilities and growth investments. Bank Hapoalim, for instance, committed $40 million in financing to support a buyout of I.D. Systems, a company involved in advanced analytics and marketing technology solutions.
2. **Partnerships with Marketing Technology Providers**: By aligning with ad-tech companies that use AI for delivering highly targeted ads, banks can help bring cutting-edge predictive marketing SaaS solutions to SMBs. These partnerships enable banks to offer clients access to innovative marketing capabilities embedded within their financial products.
3. **Integration of AI-Powered Customer Insights**: Banks can invest in or develop AI solutions that analyze customer data to generate actionable insights for SMBs. This helps businesses optimize their marketing spend and customer engagement strategies, improving ROI and fostering growth.
4. **Tailored Credit Facilities Linked to Marketing Growth**: Offering dedicated asset-based lending or credit facilities specifically designed to support SMBs’ marketing technology investments can empower these businesses to adopt AI-fueled marketing strategies without immediate capital constraints.
5. **Leadership and Expertise Development in Digital Banking**: Cultivating leadership that understands both banking and AI-driven marketing technologies is crucial for driving innovation effectively. Bank Hapoalim appointed experienced executives to oversee operations and digital transformation efforts.
In conclusion, by providing financing and credit facilities tailored to marketing technology firms, fostering partnerships with AI-based marketing SaaS providers, integrating AI for enhanced customer insights, and developing expert leadership, banks can help SMB clients leverage AI-powered marketing solutions. This approach not only improves their competitiveness but also boosts their growth potential.
By investing in AI-focused technology firms and offering specialized credit facilities, banks can foster strategic partnerships that bring cutting-edge predictive marketing solutions to small and medium-sized businesses (SMBs). This approach not only empowers SMBs to adopt AI-fueled marketing strategies but also allows for the integration of AI-powered customer insights, optimizing marketing spend and customer engagement strategies. Furthermore, by aligning with ad-tech companies and developing expert leadership in digital banking, banks can help SMBs leverage artificial intelligence (AI) for improved competitiveness and growth potential.
