News & Insights

Digitisation is driving a substantial rise in e-invoicing volumes. The upcoming country-specific implementations of the VAT in the Digital Age (ViDA) regulation are expected to accelerate this trend. As a result, e-invoicing will become more closely intertwined with digital payments and financing for small and medium-sized enterprises (SMEs). To remain competitive and drive innovation in the SME sector, banks need to act now to strategically position to capitalise on the emerging opportunities in this space.

With e-invoicing volumes set to increase rapidly in the near future, the battle in SME banking will further intensify with new players building comprehensive, digital one-stop shop solutions. For banks, it is imperative to adapt and innovate now to stay ahead in this dynamic environment.

The growing importance of digital ‘one-stop-shop’ solutions

Providers of e-invoicing software have access to a wealth of data that they can use to further enhance their service offering, such as by adding embedded payment and financing solutions within their e-invoicing platforms. This could fundamentally change the traditional power dynamics, favouring those with a strong position in e-invoicing. The B2B ecosystem is likely to see a surge of providers offering SMEs seamlessly integrated ‘one-stop-shop’ solutions that combine e-invoicing, payments, financing and other banking services (e.g. accounts, cards, insurance). 

Risk of disintermediation and revenue loss

For banks, the shifting power balance towards providers of e-invoicing services presents a challenge. If SMEs opt for e-invoicing providers that can meet their comprehensive financial needs in a single integrated platform, we could see a disintermediation of banking relationships leading to revenue loss. To maintain their competitive edge and relevance in the value chain, banks must recognise the urgency of acting now to adapt to this evolving landscape.

Banks are well positioned to capitalise on the e-invoicing opportunity

For those banks that are willing to anticipate and innovate, the rapid rise in e-invoicing volumes presents a wealth of opportunities. By embracing the e-invoicing trend, banks can further cement their position as the preferred financial partner for SMEs. This proactive approach will enable banks to retain their relevance in SME banking through a comprehensive suite of integrated digital solutions.

For our deeper analysis of the evolving e-invoicing landscape and the implications for banks, download the detailed presentation below.