MSME Day: 5 FinTechs driving financial inclusion for SMBs in Europe

By Gloria Methri

The MSME sector is the backbone of Europe’s economy, making up over 99% of businesses and employing more than 85 million people. In the UK alone, approximately 5.5 million MSMEs employ around 16.3 million people and contribute 52% of the GDP. The vitality and innovation brought by MSMEs are crucial to Europe’s overall economic health. They foster entrepreneurship and drive sustainable and digital economic development.

Despite their importance, MSMEs face challenges like limited financing, regulatory burdens, and stiff competition. FinTech companies are addressing these issues with innovative solutions such as digital banking services, streamlined loans, and advanced financial tools, empowering the SMBs to manage cash flow.

Additionally, FinTech platforms enable better access to global markets and financial networks, empowering small businesses to compete more effectively on the continent.

On World MSME Day, let’s look at five FinTechs empowering MSMEs for financial inclusion in Europe:

• Holvi

Holvi, based in Finland, offers a digital banking service tailored for freelancers and small businesses. It combines banking with business management tools.

Holvi provides invoicing, expense management, and bookkeeping features alongside traditional banking services. It supports thousands of MSMEs in managing their finances more efficiently, helping them focus on growth and sustainability.

• iwoca

iwoca is a UK-based FinTech providing flexible financing solutions for small businesses. It offers quick access to credit lines and loans to help businesses manage cash flow and invest in growth.

iwoca uses advanced data analytics to offer personalized credit solutions and quick loan approvals. The company has funded over 70,000 small businesses, enhancing their ability to access finance and grow.

• Qonto

Qonto is a French FinTech offering an all-in-one banking solution for freelancers, startups, and SMEs. It aims to simplify banking with features designed specifically for business needs. Qonto provides multi-currency accounts, expense management tools, and seamless integration with accounting software.

It serves over 250,000 businesses across Europe, promoting financial inclusion by offering accessible and transparent banking solutions.

• SumUp

SumUp is a global FinTech headquartered in London that provides payment solutions for small businesses. It offers easy-to-use and affordable point-of-sale (POS) systems and card readers. SumUp’s services include mobile card readers, online payment processing, and invoicing solutions.

The company has empowered over 3 million businesses worldwide, including many MSME firms in Europe, by enabling them to accept card payments and manage their sales efficiently.

• Tide

Tide is a UK-based digital banking service focused on SMEs. It provides a range of services, including business accounts, expense management, and credit services tailored to small businesses. Tide offers quick account setup, integrated invoicing, and automated bookkeeping, helping MSMEs streamline their financial operations.

The FinTech has simplified banking for over 400,000 businesses, enabling them to manage their finances more effectively and access necessary financial services.