As small and mid-sized enterprises (SMEs) continue to anchor economies worldwide, their banking needs are rapidly evolving – driven by digital innovation, new regulatory frameworks, and shifting customer expectations. Few are as attuned to these dynamics as Manfredi de’Mozzi, Senior Partner, EMEA Head of SME Banking and Corporate Banking Sectors and SEE Head of Financial Services Practice, Bain & Company, who has been closely tracking how global institutions are redefining SME banking through technology, data and human insight.
As de’Mozzi gears up to sit on the judging panel for the upcoming Global SME Banking Innovation Awards 2026, hosted by The Digital Banker, he shares his perspective on the transformative trends shaping SME banking today, what distinguishes true innovation in the sector, and how banks can balance digital efficiency with human connection to create lasting value for SMEs.
The Digital Banker: From your perspective, what are some standout trends you are observing in SME banking that are setting benchmarks on a global scale?
Manfredi de’Mozzi: At Bain, we are seeing a strong momentum in SME banking, with several global trends clearly emerging.
First, fintechs and digital banks are entering the market with fully digital business models, often focused on daily banking, payments, and credit. These players are not only reshaping customer expectations but also raising the competitive bar, putting significant pressure on incumbent institutions.
Second, traditional banks are responding with a comprehensive rethink of their strategies. We observe three priority areas driving this transformation:
- Hybrid digital banking models – Many banks are evolving toward models that combine the human advisory role of relationship managers with digital platforms, offering clients the best of both worlds.
- Digital lending – Institutions are reimagining the entire credit journey, leveraging data and digital tools to deliver smarter, faster, and more seamless lending experiences.
- Commercial excellence through AI – Banks are increasingly deploying AI and generative AI to empower relationship managers and, at the same time, create direct engagement channels for customers via service centers and mobile banking platforms.
Together, these trends are setting new benchmarks for SME banking globally and redefining how value is delivered to clients.
As a judge for the Global SME Banking Awards 2026, what qualities or innovations are you particularly looking for, that truly demonstrate an impact for SMEs?
When evaluating candidates for the Global SME Banking Awards 2026, I will be looking for three main qualities that really move the needle for SMEs.
First, the smart application of technology—for example, innovative use cases of generative AI that go beyond buzzwords and deliver tangible improvements in efficiency, decision-making, or customer experience.
Second, a genuine customer-centric approach, where banks demonstrate not only a strong focus on meeting SME needs but also measurable results in terms of customer satisfaction and loyalty, such as Net Promoter Score improvements.
Finally, and most importantly, the creation of real economic value. The solutions that stand out are those that help SMEs grow, improve access to credit, or enhance productivity in a way that is both scalable and sustainable.
These are the innovations that, in my view, set the standard for excellence and impact in SME banking.
SMEs face a unique set of challenges compared to corporates – what role can banks play in bridging this gap and enhancing accessibility for this sector?
SMEs often struggle with constraints that larger corporates do not face, and banks have a critical role to play in closing that gap.
First, facilitating easier access to credit is fundamental. By simplifying processes and leveraging data-driven approaches, banks can provide SMEs with faster, more transparent, and more reliable financing solutions.
Second, banks can build value propositions around the broader supply chain ecosystem. Instruments such as reverse factoring and confirming not only improve SMEs’ liquidity but also strengthen their integration within the supply chain, enhancing stability and resilience.
Finally, banks can take an active role in supporting innovation in specific industries. For example, targeted initiatives in sectors like agribusiness and agritech can provide SMEs with tailored financial solutions and advisory services that fuel both growth and innovation.
In all of these areas, the role of banks is not only to provide financing but to act as enablers of competitiveness and long-term value creation for SMEs.
How do you see regulatory environments, especially in Europe, influence SME banking for the better?
In Europe, regulation is increasingly acting as a catalyst for innovation in SME banking. A clear example is open banking, which lowers barriers to entry and facilitates the participation of new players in the market. By enabling secure data sharing, it creates a more competitive landscape where fintechs, digital banks, and traditional institutions can all bring new propositions to SMEs.
For SMEs, this means greater choice, more tailored solutions, and ultimately better access to the financial services they need to grow. Far from being just a compliance exercise, regulation like open banking is helping to reshape the industry in ways that directly benefit small and mid-sized businesses.
Looking ahead, what according to you will define the next generation of SME banking excellence that will be celebrated in future editions of the Global SME Banking Awards?
I believe the real champions of SME banking will be those institutions that succeed in seamlessly combining human expertise with technology. Excellence will be defined by the ability to create unique value propositions that bring together the empathy, trust and tailored advice of relationship managers with the scalability, speed and intelligence of digital solutions.
The banks that stand out will not only deliver superior customer experiences but will also play a decisive role in supporting SMEs throughout their growth journey—helping them access capital, innovate, and compete in increasingly complex markets. In the end, the future of SME banking excellence will belong to those who can strike this balance, transforming technology into a true enabler of human connection and long-term value creation.
