Seize the Opportunity with Next Gen SMBs by Meeting the Needs of Creators
In today's fast-paced digital landscape, a transformative shift is underway—one that presents an incredible opportunity for both emerging entrepreneurs and financial institutions. This shift is the rise of the creator economy, where Generation Z and young Millennials are not only shaping the future of small businesses but are also redefining the financial services they need. As these young creators look to monetize their skills and passions, a unique opportunity emerges for Financial Institutions to position themselves as the preferred partners for this growing segment.
The New Economy, Driven by Social Media
The creator economy is powered by a new generation of entrepreneurs leveraging social media to reach global audiences. According to our recent study, these Gen Z and young Millennial small business owners, aged between 18 and 35, predominantly use social channels to conduct business. An impressive 49% of them rely on social networks as their main source of business information. This highlights the need for financial partners to be more present on social media and to offer solutions tailored to the new ways of doing business on digital platforms.
SMEs Are No Longer Local—but International
The global landscape of next-generation SMBs opens fertile ground for innovation. With 20% of their sales being international and significant spending on marketing abroad, these businesses require reliable cross-border transaction solutions.
Traditional Banks Could Be Left Behind
Despite the explosive growth of the creator economy, many feel underserved by traditional banking models. These models often fail to recognize the unique needs and revenue potential of next-generation SMBs, leaving many creators struggling to secure fast payments and financing. This gap is paving the way for new and disruptive players, who have been more agile in designing and offering solutions tailored to this segment.
Traditional Banking Still Has Much to Offer
Beyond immediate financial solutions, next-generation SMB owners are looking for Financial Institutions that are innovative and adaptable. Approximately 46% of these young entrepreneur’s value innovation in a bank and, globally, 67% still prefer the reliability of traditional banks over fintech alternatives. Moreover, many young business owners are still navigating the early stages of entrepreneurship, valuing personalized advisory and guidance services—areas where traditional banks are well positioned to deliver. Even though in our Latin American region the preference for new players is higher, these findings indicate an opportunity for established banks to reform their offerings and better tailor their services to the expectations of these digital business owners.
Tailored Solutions to Capture the Market
As fintechs increasingly target the next-generation segment, traditional Financial Institutions must evolve their strategies. By partnering with Visa, banks can offer the necessary tools to empower creators—from diverse payment solutions and training to business management tools and personalized benefits.
The creator economy is not just a trend; it is a seismic shift in how business is done. With small and medium-sized businesses representing 99% of companies in our region, the stakes are clear. Financial Institutions that recognize and respond to this shift with innovative and personalized solutions will be well positioned to support next-generation SMB owners in their growth and secure their place as leaders in the future of financial services.
Click here to read the full study and explore more insights and strategies to engage with next-generation SMB owners.