Micro-, small, and medium-size enterprises (MSMEs) represent a crucial and growing market for banks, as they represent 90 percent of all companies and more than a fifth of global banking revenue pools. But banks face stiff competition from digital-first entrants and integrated software vendors that offer convenience and speedy services, note Partner András Havas and coauthors. Traditional banks that rely on manual processes and fragmented coverage models risk leaving MSMEs underserved. Banks can strengthen their market position by, for instance, prioritizing the digitization of the customer journey and offering data-driven recommendations and hyperpersonalized outreach campaigns.
Image description:
A pair of bar charts illustrates global banking revenues by segment from 2019 to 2024. The left chart displays revenues in trillions of dollars, with three categories: retail, large corporations, and small and medium-size enterprises. In 2019, retail revenues were $2.23 trillion, large corporations were $1.18 trillion, and small and medium-size enterprises were $0.86 trillion. By 2024, these figures rose to $2.98 trillion, $1.61 trillion, and $1.18 trillion, respectively. The compound annual growth rate (CAGR) from 2019 to 2024 is listed next to each category: retail at 6%, large corporations at 6%, and small and medium-size enterprises at 7%. The right chart shows the percentage distribution of global banking revenues by segment over the same period. In 2019, retail accounted for 52%, large corporations for 28%, and small and medium-size enterprises for 20%. By 2024, the distribution remained relatively stable, with retail at 52%, large corporations at 28%, and small and medium-size enterprises at 21%.
Note: This image description was completed with the assistance of Writer, a gen AI tool.
Source: McKinsey Panorama—Global Banking Pools.
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To read the article, see “Digital-led with a human touch: The next era in small-business banking,” August 11, 2025.