TRANSFORMATION: SME BANKING Over to you: Innovative providers are giving SMEs their power, and their lives, back
YES, ! S S BO The influx of small business banking remedies can feel like a bunch of solutions looking for a problem. We asked Adi Engel from US-based management app Vcita, and the UK’s Oliver Prill of SME financial platform Tide and high street operator Metro Bank’s Kat Robinson, what SME owners would want if you asked them 40
TheFintechMagazine | Issue 23
What a sole trader or small business owner needs in terms of tools and services to adapt and thrive in an online world can seem obvious to a digital crusader: a bank account that integrates with accounting software, certainly; low transaction fees are a no-brainer; and then they should surely be taking advantage of networking opportunities and be shown examples of financial best practices to help their business grow. But what do small business owners actually want? Well, often it’s simply to be left alone if they’re being crushed by workload, or they’re in a battle to survive, and many cling desperately to tried-and-tested (but analogue) methods just because they don’t have the head space or time to learn a whole new set of processes. It’s also worth remembering that they’re far from being a homogenous group: size, aspirations, and therefore, needs, differ markedly, although an impatience with digital technology and a reluctance to spend time engaging with it can be a uniting characteristic! For years, pressure groups such as the Federation of Small Businesses have criticised what was perceived as a complacent business account offer from incumbent banks in the UK. Now, the growth of fintechs, challenger banks and open banking regulations are turning a digital famine into a feast of choice – the challenge is proving to be how you put products in front of bosses and get them signed up. Frustration is a common reaction to being told what they must do, says Adi Engel, chief marketing officer for US-based small business management app Vcita, which aims to improve efficiency by automating processes such as appointment and client file management and invoice chasing, alongside ‘robust’ marketing features. It’s a global company with 1.5 million registered users, including customers in the UK, so it’s obviously getting a lot right. “But I see frustration with us telling them ‘you should digitise, you should digitise’,” admits Engel. “I also often see their patience with models that are now ffnews.com
