Financing has been recognised as a critical factor which determines the growth and survival of SMEs globally. The different financing options and services provided by banks allow SMEs to undertake productive investments to expand their businesses and to acquire the latest technologies and implement techniques beneficial to them. This gives them the leverage to compete. While banks are trying to venture into new markets and for cost efficient ways to implement new business models, SMEs are considered as a strategic business segment and can be exploited by merging the functionality provided by banks within the financial processes of SMEs. This can be done by creating processes which are customer centric. This means providing a stable, collaborated, well-functioning financial platform , which is capable of effectively servicing SME’s needs and working on the micro level initiatives that directly benefit SMEs credit. It is difficult for banks to develop the exact requirements of the customer and for this reason it is proposed that they identify the core processes and support process of the customers company and integrate their processes with them. In this way new growth opportunities and sectors for value added services will open for the banks since they can move from being generic product oriented to customer centric, process driven institution. METHODS
In order to identify the business process at the customer (SMEs) end, a survey was conducted in the year 2005. Questionnaires were distributed via mail across various industries which fell in the revenue bracket of € 2.5 m to € 200 m. Four fifty companies were selected randomly from a German bank database ( DZ Bank AG).The time to respond was within 4 weeks and the rate of return of the survey was 20.2% .On the other hand to assess the Current Customer Process Orientation provided by the financial institutes (Banks ), Interviews of semi structured formats were held. Managers who led Process design for SMEs were...
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