Pandemic forced UK SMEs to be more reliant on digital services

The sudden move to the digital space, however, caused frustrations with banking services

UK SMEs

Pandemic forced UK SMEs to be more reliant on digital services. Source: pexels.com

Digital banking services have played an important role in businesses in the wake of the pandemic. In a survey carried out by Marqeta, 78% of SMEs relied more on digital banking as opposed to pre-pandemic times. However, 84% of the SMEs are dissatisfied with the business banking practices, with ¾ pressuring the banks to improve the digital banking experience.

SMEs now have more digital alternatives due to the notable increase in challenger banks and fintechs. And with the increasing dissatisfaction with digital services, banks will be forced to address the customer’s frustrations. Failure to this would see the financial institutions lose on their market share.

Among the 400 UK SMEs surveyed, 89% noted that banks should provide more digital business banking services even post-pandemic. In fact, 67% showed dissatisfaction in the provision of digital services by their bank accounts.

Another 28% have been forced to change business bank accounts in the search for better digital and online services while 68% complained that business bank accounts’ digital features are less advanced than those of customer bank accounts.

Besides, 33% of SMEs faced restrictions in the activities they could undertake on the business bank accounts without being charged more. 30% of the respondents complained of inflexible credit options and long lending processes.

In addition, 29% had difficulties integrating their business systems with the bank accounts while 57% found it difficult to grasp the variances in the digital banking products.

In the future, 82% of SMEs would like business bank accounts to offer a means of tracking expenditure and income in real-time. 80% want to be able to pay, send and track invoices from their accounts while 77% want the integration of business banking with other systems such as accounting.

We’ve reported that over 95% of Americans believe in at least 1 money myth.

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