Greater Bay Area SMEs show ‘strong appetite’ for financial services

Many SMEs are underbanked, Bain & Company found. 

Small and Medium Enterprises (SMEs) in the Greater Bay Area are showing a “strong appetite” for financial services, Bain & Company reported. 

“SMEs in the GBA are highly positive of the economic outlook and they are eager to grow. About 70% of both Mainland and Hong Kong SMEs surveyed are optimistic about the government’s interconnectedness policies, and about 80% would like the government’s initiatives to be implemented faster,” Frankie Leung,a partner with Bain & Company’s Financial Services practice in Hong Kong said. 

“However, SMEs need help to expand, in particular, support from financial institutions from both mainland China and Hong Kong, tailored cross-boundary financial products, and convenient delivery models.”

Read more: 6 in 10 SMEs plan to invest over 15% of their revenue within GBA: survey

The report found that about 60% of mainland SMEs and 35% of Hong Kong SMEs need to secure over 40% of the funds they need for domestic investments and operations in the next three years. SMEs, however, struggle with application processes. 

Moreover, about half of mainland SMEs said they are likely to expand into Hong Kong or Macau, and nearly 75% of Hong Kong SMEs expect to expand into mainland China amidst growing interest for cross-boundary financial products.