For small and medium-sized enterprises (SMEs), access to finance is only one part of the equation. Business owners also need banking partners who understand their operations, respond to their immediate challenges and adapt their support as their businesses grow.
This was a key message from a panel discussion at 2026 Nedbank SME Day, where the bank explored how its approach to client relationships can translate into more meaningful support for South African entrepreneurs.
The discussion highlighted a shift away from a product-led banking model towards a relationship-driven approach that prioritises understanding the people behind businesses, identifying their needs and connecting them with appropriate solutions.
At the heart of this approach is the recognition that SMEs are not interchangeable. Their challenges differ depending on their industries, stages of development and growth ambitions. Supporting them effectively therefore requires more than offering standard banking products.
Understanding the Business Before Recommending Solutions
A banking relationship that works for both parties should begin with understanding the business, not with a conversation around which product a client should adopt. For SMEs, whose financial and operational needs can vary significantly depending on their industry, size and stage of development, this distinction is important.
During the panel discussion, Nedbank’s Olivia Pratt, Executive: Sales Strategy and Enablement, SME Management, highlighted that Nedbank’s approach is centred on understanding each client’s circumstances, identifying their challenges and recognising their ambitions before connecting them with appropriate banking solutions.
This approach is important for SMEs because they need banking solutions that are tailored to their unique business models and circumstances, as standard, rigid corporate models tend to not fit their operational realities.
“Shifting that conversation from the product to a true understanding of the customers’ pain points, the customers’ opportunities, and their ambitions to grow, makes it easier to build that relationship and give clients products that align with their business,” explained Pratt.
The Role of Relationship Managers in Connecting SMEs with Solutions
Understanding an SME’s needs is only the first step. The real value of a relationship-led approach comes from translating that understanding into practical support. This places an important responsibility on relationship managers and frontline banking teams, who need to understand how their clients operate and identify solutions that address their specific requirements.
What Are Relationship Managers In Banking?
A relationship manager or relationship banker is a dedicated, client-facing professional who acts as the primary point of contact between a customer and the financial institution. They manage a portfolio of clients, ranging from everyday retail or private banking customers to large corporate enterprises, to help them navigate their banking, investment, and credit needs.
During the discussion, Pratt highlighted the importance of having teams that know their customers’ businesses well enough to connect them with relevant products, services and opportunities, rather than simply responding to individual banking transactions.
“Our coverage teams take time to know the businesses so that they are able to be an advantage for these businesses and even investors for businesses,” she said.
Turning Client Relationships Into Practical Support for SMEs
Joining the panel was Mavis Nongogo, who owns and runs Nomenti Gas. They are a major distributor of liquefied petroleum gas (LPG) and welding gas, supplying thousands of cylinders weekly to local households, schools, and businesses across the Western Cape.
Mavis explained that she contacted Nedbank looking for help on handling the cash she had made throughout the day. She said it was not safe for her to carry this large amount every day and physically deposit it into the bank.
Her relationship banker at Nedbank listened to her issue, understood the business and provided Mavis with a solution. Through Nedbank, Mavis was able to secure services from Fidelity to ensure that her cash is safely transported to the bank every day.
This is a practical example of how Nedbank becomes more than just a banker for its SME clients. The bank understood that what Mavis needed was not a common SME problem and worked with her to ensure she received the practical and tailored support she needed.
“We really need to understand the business again, match the products and the solutions, and find solutions where none exist,” said Pratt.
What SME Owners Should Expect From a Banking Partner
For SME owners, choosing a banking partner should involve looking beyond the products and services available to consider the quality of the relationship they can build with the institution. A bank that understands the business, recognises its challenges and remains engaged as its needs change can potentially provide more relevant support than one that focuses solely on individual transactions.
What to look for in a banking partner:
- Human connection and continuity: Direct, consistent access to a knowledgeable relationship manager or commercial banker who understands your industry and cash flow cycles rather than routing through automated call centres.
- Business understanding and tailored guidance: A partner that grasps local and regional market dynamics, seasonal revenue fluctuations, and specific sector needs.
- Comprehensive financial products and scalability: Integrated solutions spanning everyday transactional banking, payment processing, merchant services, payroll support, overdraft management, and short- or medium-term credit lines that scale as you grow.
- Proactive advisory and annual reviews: Regular check-ins, not just when you need to apply for a loan, to review financial performance, optimise deposit and treasury relationships, and plan for capital expansion.
- Non-financial support and ecosystems: Access to value-add resources like mentorship programmes, masterclasses, and networking platforms designed to improve market access and financial literacy.
“What differentiates Nedbank is how we service you and how we are able to factor those needs when connecting with SME owners,” she said.
Making SME Banking More Relevant to Business Needs
Ultimately, the value of a banking relationship should be measured by how effectively it helps a business address its challenges and pursue its ambitions. The discussion at Nedbank SME Day highlighted the importance of understanding entrepreneurs beyond their immediate financial needs, connecting them with practical solutions and maintaining that support as their businesses evolve.
For South African SMEs navigating an increasingly demanding business environment, a banking partner that understands the realities of running a business can play an important role in supporting long-term sustainability and growth.
