In the sprawling jungle of global commerce, small and medium-sized enterprises (SMEs) often find themselves on the fringes, struggling to access the resources needed to expand their operations. One major challenge they face is the traditional banking system, which, as Max Faldin's experience with OCBC in 2016 suggests, is deeply flawed in its approach to SMEs.
A Broken System
When Max Faldin pushed for OCBC to onboard Chinese eBay merchants that served online customers in Eastern Europe, the response he received was indicative of a deeper issue: traditional banks simply do not trust their SME customers. For these banks, due diligence is a cornerstone of their operations. They spend significant resources ensuring that every cross-border transaction is legal and transparent. But this due diligence, while easy for large corporations, is a costly and cumbersome process for SMEs.
The result? Many SMEs, even those with a decade-long history, are ostracised from the banking community. Max realized that there's a severe trust deficit. Traditional banks often find it convenient to label high-volume transactions from SMEs as suspicious rather than investing time and resources to understand these businesses' real nature.
The Changing Landscape of Trade
Historically, international trade was the dominion of large corporations. They had the infrastructure, finances, and regulatory knowledge to navigate this intricate landscape. But the onset of the digital era in the 1980s shifted the dynamics. The internet allowed SMEs to directly connect with their customers. Regulations adapted, technology evolved, and globalisation opened up trade like never before. But in this rapidly changing world, one sector remained stagnant - banking.
Despite the technological leaps and bounds, traditional banks remained tethered to their legacy systems, largely because there was no substantial financial incentive for them to innovate and adapt.
Silverbird: A New Hope for SMEs
Enter Silverbird, Max Faldin's revolutionary answer to the outdated, elitist banking system. Silverbird isn't just another banking solution; it's a tool designed with a clear purpose: to use technology to bridge the yawning gap that has left millions of SMEs underbanked globally.
Using third-party transactional data, Silverbird recreates the supply chains of its customers. It offers a detailed look into how these businesses operate, from their geographic specifics to the very nature of their transactions. This in-depth knowledge enables Silverbird to achieve what traditional banks have failed to do: truly trust their SME customers.
By focusing exclusively on international merchants, Silverbird can provide a level of attention and understanding that traditional banks simply cannot offer. The result? A quick, risk-adjusted onboarding process and the support for high-volume transactions without the typical constraints.
Max Faldin's Silverbird isn't just a banking alternative; it's a testament to the power of technology and innovation. In a world where SMEs are the backbone of economies but often ignored by the banking giants, Silverbird is a beacon of hope. It serves as a reminder that with the right tools and vision, even the most entrenched systems can be challenged and changed for the better.