Future of SME Banking by EY

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Helping tech companies raise equity investment
UK SMEs are a growing and demanding segment accounting for approximately 99% of the private companies in the UK.
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
SME bank service SME bank business provide
The future of 
SME banking
Minds made for redefining 
financial services
December 2018
The future of SME banking
1
When the financial services industry 
works well, it creates growth, prosperity 
and peace of mind for hundreds of 
millions of people. No other industry 
touches so many lives or shapes so 
many futures.
At EY Financial Services, we share a 
single focus  to build a better financial  
services industry, not just for now, but for 
the future. 
We train and nurture the inclusive teams 
to develop minds that can transform, 
shape and innovate financial services.  
EY professionals come together from 
different backgrounds and walks of life to 
apply their skills and insights to ask better 
questions. It's these better questions 
that lead to better answers, benefitting  
EY clients, their clients and the wider 
community. Our minds are made to 
build a better financial services industry.  
It's how we play our part in building a 
better working world. 
ey.com/ukfs
Contents
Executive summary 
1
What is the status quo? 
2
Changes in the SME banking landscape 
7
The evolving needs of the SME 
11
The future: SME services in a platform world 
17
The rise of technology firms 
21
Closing the gap: how do you create a 
future-proof SME bank? 
23
The future of SME banking
Executive summary
We have identified dynamic changes in the industry, driven by evolving SME needs and 
enabled by advances in technology.
Entrepreneurs come in all shapes and sizes, from the funky 
FinTech start-up or family business on the high street to the 
home-based manufacturer using 3D printers and the power of 
the internet to reach new markets. The path from start-up to 
corporate is no longer linear. The banking needs of small and 
medium enterprises (SMEs) are changing dramatically, and the 
banks' responses need to evolve accordingly. The UK Government 
and regulators are applying increased scrutiny to the segment 
to ensure that there is both innovation and competition in 
the market.
There can be no doubt that increased access to debt finance and 
supporting services is required. There are now some 5.5mn SMEs 
in the UK (representing phenomenal growth in recent years). 
These SMEs have a turnover of 1.9tn, covering 51% of all private 
sector turnover in the UK. We are seeing a growing market with 
many diverse and complex needs; a market that needs better 
products, more tailored to financial services. 
A tangible example of regulatory action is the recent formation 
of the Banking Competition Remedies Ltd, an independent body 
which will administer access to 775mn of funding for those that 
can demonstrate they will address SME needs. The intent is clear: 
to increase access to capital and supporting services to the SME 
lending market and support the lifeblood of the economy.
At EY, we believe this is a great opportunity for the market  not 
only those bidding for funding but everyone involved  to re-
examine and re-imagine their propositions, putting the needs of 
SMEs first.
We think that it's vital that traditional banks, challengers and 
FinTechs all look at how they can do things better. This is not 
just about tweaking existing products; it's about having the right 
propositions and the right support and services. Digital is at the 
heart of the next wave of SME banking services. SMEs use digital 
platforms for their businesses and have every right to expect to 
have their financial services on these platforms too.
This is even more important with the advent of open banking 
changing the traditional competitor landscape. Firms need to 
make sure they can combine innovative digital and data offerings, 
alongside human advice.
In this report, we have outlined a number of questions that we 
believe firms need to ask themselves with respect to how they 
can really help the SME community, considering how they can 
provide additional insight, tools and services that will best serve 
their customers. Firms that answer these questions the best are 
likely to come out on top, not just in this funding contest, but in the 
ongoing battle of attracting and retaining SME customers.
Dan Cooper 
UK Banking & Capital Markets Leader    
EY
The future of SME banking
1
What is the status quo?
UK SMEs are a growing and demanding segment accounting for approximately 99% of 
the private companies in the UK.
SMEs account for the majority of registered businesses in 
the UK and are traditionally categorised by headcount and 
turnover. For the purpose of this publication, we have grouped 
SMEs into four categories: sole proprietors, micro-businesses, 
small enterprises and medium enterprises. 
Sole proprietors are companies with zero employees. 
Micro-businesses are companies with a turnover of less than 
1mn and fewer than 10 employees. Small enterprises have 
between 10 and 49 members of staff and a turnover between 
2mn and 5mn. Lastly, medium enterprises make up the 
final segment of the SME market, with 50 to 249 employees 
and turnover between 5mn and 25mn.
1
1.1 UK SMEs: a growing market
UK SMEs are a large and growing market with 
turnover of 1.9tn and account for approximately 
99% of private companies.
SMEs are the lifeblood of the UK economy. Despite the financial 
crisis, the total number of SMEs has grown over the previous 
decade. They have been instrumental to job creation, with 
approximately 16.1mn employees in 2017, representing 60% of all 
private sector employment.
They are equally important to UK plc, with a combined annual 
turnover of 1.9tn, covering 51% of all private sector turnover in 
the UK. In times of austerity, the Government has relied heavily 
on the growth of SMEs to help fuel the economy and, in uncertain 
economic times, further emphasis will be placed on this key sector.
Resilience in times of austerity
We have seen an explosion in the number of new start-ups over 
the past five years, each with the same basic need to fuel their 
growth: working capital finance. The number of small and micro-
businesses in the UK grew by 1.8% in 2016 to 5.5mn, representing 
99% of the UK private sector by volume.
As outlined in Figure 1, the number of active SMEs, defined as 
those with either turnover or employment over the course of any 
given year, has grown steadily at 3.8% CAGR. Critically, as well as 
growing in number, they have also been growing in size, with SME 
turnover increasing by 5% CAGR from 2013 to 2017 as indicated 
in Figure 2. 
3,878
4,155
4,264
4,366
4,520
860
921
948
961
1,002
36
37
39
40
40
2013
2014
2015
2016
2017
202
219
210
220
224
4,976
5,323
5,470
5,587
5,786
+3.8%
CAGR
Sole proprietors
Micro-businesses
Small enterprises
Medium enterprises
237
259
266
285
301
370
407
418
446
536
504
502
558
577
556
515
529
568
577
574
2014
2015
2016
2017
Sole proprietors
Micro-businesses
Small enterprises
Medium enterprises
+5% 
CAGR
2013
1,626
1,697
1,810
1,885
1,967
Figure 1: Number of SMEs by size, 201317, (000s)
Figure 2: SME turnover by size, 201317, (000s)
The future of SME banking
2
Since 2010, each year there have typically been more micro-SME 
creations (the number of new active companies) than wind-
downs (the number of micro-SMEs that ceased to be active). The 
exception to this was 2010, when wind-downs exceeded new 
starts, reflecting the impact of the financial crisis which led to the 
failure of a number of small businesses:
  As illustrated in Figure 3, since 2010, with the increasing 
health of the economy, there has been an increase in the net 
number of new companies (9.9% CAGR).
  The spike in new starts in 2013 (year-on-year growth of 
28.5%) reflects the UK Government's focus on promoting and 
protecting small companies following the financial crisis.
  A number of new initiatives were established as part of the 
business enterprise policy, such as start-up loans (2012) and 
the Business Finance Partnership (BFP, 2013). Start-up loans 
have so far provided over 400mn in government-backed 
loans to young entrepreneurs.
  The BFP aimed to increase lending to SMEs from sources other 
than banks. It invested over 800mn in 2013 in companies 
offering finance to SMEs.
228
254
262
337
341
374
403
239
221
243
228
237
272
317
2010
2011
2012
2013
2014
2015
2016
New starts
Wind-downs
9.9%
4.8%
CAGR
Figure 3: Number of micro-SME businesses: new starts 
and wind-downs
SMEs are not only instrumental for job creation 
and UK plc but are also an important customer 
segment for the banking industry.
Whilst attention in recent years has been on serving the 
consumer market, the SME market generates c.14bn in 
banking revenue and 10%15% return on equity (ROE)*   
representing a significant opportunity for existing and 
emerging financial institutions.
We have provided a view below of the revenue generated by 
each category of SME. 
Segment
Definition
Total no. 
of SMEs
Revenue 
pool ()
1
Sole proprietors
0 FTE
4.3mn
5.3bn
2 Micro-businesses
19 FTE or 
0mn2mn 
turnover
1.2mn
2.2bn
3
Small enterprises
1049 FTE or 
2mn5mn 
turnover
208,000
2.2bn
4 Medium 
enterprises
50249 FTE or 
2mn5mn 
turnover
38,000
6.5bn
5
Corporates
>250 FTE or  
>25mn 
turnover
72,000
16bn
Source: EY analysis, Mintel Small Business Banking  UK  September 2017.
The future of SME banking
3
1.2  Dominant incumbents have 
led to a drive for greater 
competition
Though business banking is positioned differently 
amongst high street banks, they have dominated 
market share.
The major high street banks retain a substantial stronghold of 
the SME banking market, particularly business current accounts 
(BCAs), where the top five banks account for around 75% of the 
market. Whilst their market share is being eroded by the rise of 
challenger banks and FinTechs, the incumbent players continue 
to hold affinity with their customers. SMEs continue to trust the 
brand and reputation of their bank, though they have experienced 
challenges in meeting their evolving service expectations.
Each of the major high street banks is set up differently to serve 
the SME segment: at Lloyds Bank, for example, SME customers are 
grouped into their 'community banking' population, with middle- 
and back-office operations supported by the retail and commercial 
banking divisions. The table below provides a comparison of the 
five major high street banks and provides a view of where the 
segment sits within their organisation.
SMEs can find themselves dealing with a retail bank for their 
personal needs and then, depending on their choice of bank for 
business banking needs, they could be dealing with separate 
community, commercial, personal or wealth divisions. Data is 
often not shared across the key business divisions, leading to a 
lack of detailed understanding and personalisation of the SME 
user's needs. 
Traditional banks look at the UK SME market in different ways, but are united in the challenge to leverage digital and redevelop their products
Lloyds Bank
HSBC
RBS
Barclays
Santander
Business bankingPosition of business 
banking
Between retail and 
commercial banking
Separate commercial 
banking catering 
for all business 
customers
UK Personal Banking 
and Commercial & 
Private
Wealth, 
Entrepreneurs & 
Business Banking 
(Barclays UK)
Retail Banking 
(Santander UK)
Market 
commentary
  Lloyds became 
the first provider 
to integrate with 
a third party 
(Yolt) under Open 
Banking this year
  HSBC increased 
their SME Fund 
2018 to 12bn 
this year
  RBS has 
announced 
that they will 
be launching a 
standalone Digital 
SME bank (Mettle)
  Separately, it 
is funding the 
Alternative 
Remedies Package 
to increase 
competition
  Barclays has 
taken a stake in 
MarketInvoice 
and launched 
SME funds for 
groups such as 
UK housebuilders, 
and Northern 
Powerhouse
  Building an open 
digital financial 
services platform 
for SMEs
  Santander are 
eligible to apply 
for the Alternative 
Remedies 
Package
With increased competition and technological advances, SMEs have a greater appetite for better service and provision of products 
tailored to their needs. The major high street banks are aware of the dynamic forces at play and are trying to reposition their 
propositions to the SME market, whether this be in the form of improving the existing products and services on offer, or through the 
creation of new greenfield digital banks in the hope they can rival their new, legacy-free competition. 
Source: Mintel Small Business Banking  UK  September 2017.
The future of SME banking
4
1.3  SMEs are increasingly turning 
towards alternative sources 
for finance
Whilst banks have traditionally dominated SME finance, in the 
years following the financial crisis, we have seen SMEs turn to a 
broader range of suppliers for their finance needs.
Following the financial crisis and the subsequent increase in 
regulation, banks have implemented stricter lending requirements, 
deterring many SMEs from applying for funding and leading 
to a year-on-year reduction in the number of approved loans 
(Figure 4).
Figure 4: SME bank loans and overdrafts approved (000s) 
201216
112
105
96
91
84
212
162
129
118
119
2012
2013
2014
2015
2016
Number of overdrafts approved
Number of new loans approved
SMEs have also become increasingly frustrated with what they 
perceive to be poor customer service through the continued 
deployment of legacy processes coupled with restrictive finance 
requirements. This has resulted in SMEs seeking finance via 
alternative sources (Figure 5).
In a recent survey conducted by Ipsos MORI, 36% of SMEs claimed 
to be seeking finance using loans from personal sources (18% 
directors in the business and 18% family and friends). Half of those 
that injected 'personal funds' did so by choice and half felt they 
had to.
The top barriers to bank finance for 'would-be borrowers' are:
  Discouragement (47%) (put off by bank)
  Assumed they would be turned down and so did not 
apply (30%)
  Process of borrowing (typically the hassle or expense) (29%)
Figure 5: SME finance obtained in past three years  
(% of SMEs using products) 2017
44
39
28
23
5
4
Credit cardBank overdraftLeasing/HPAsset financeCommercialmortgageBank loan orMortgageBanking finance
Alternative finance
36
17
7
2
Loans (director,friend or familyGrants andgovernmentschemesOther third partiesEquity finance andP2P lendingSource: EY analysis, Mintel Small Business Banking  UK  September 2017 and EY analysis (Federation of Small Businesses (FSB)  Verve 'Voice of the Small Business' Panel 
Survey), 2017 Business Finance Survey: SMEs, Ipsos MORI, February 2017. 'Forms of Finance Obtained within the past three years' (2017). Based on SME sample: 1,535.
If banks want to protect a crucial market from being further 
eroded, they need to address the root causes of SMEs turning 
towards alternative sources of finance.
The future of SME banking
5
1.4  There remains a sizeable 
market to be served
Despite the rise of challenger banks and FinTechs, 
there continues to be a significant market 
opportunity for institutions to grow their footprint. 
Whilst consumers continue to be a key focus, the industry 
has recognised a significant unfulfilled opportunity within the 
SME market. 
There are sizeable areas to grow market share across a number 
of products that are targeted at the SME sector. The table below 
provides a breakdown of the growth opportunities with respect 
to traditional banking products and the current demand by the 
SME sector. 
Demand for SME banking services  2017 (bn)
Sole proprietor and 
micro-business
Small enterprise
Medium enterprise
UK total
LendingAsset finance
12.2
5.1
1.3
18.6
Invoice finance 
(net lending)
1.1
4.2
5
10.4
Credit cards
10.1
22.7
32.8
Business loans
7
15.9
22.9
Commercial 
mortgages and 
property development
11.2
3.3
1.4
15.9
OtherBusiness current 
accounts
29.3
34.9
64.3
Foreign exchange 
141.5
178.1
67.8
387.4
Savings (balances)
14.5
17.3
31.8
As the number of SMEs continues to grow, we will see demand increasing for products traditionally provided by a financial 
institution. As well as traditional lending products, there is opportunity for growth in other key product areas such as BCAs and 
foreign exchange (FX). 
Source: Finance and Leasing Association (FLA), UK Finance, The UK Commercial Property Lending Report, Cass Business School, Mintel, Office for National Statistics, 
HM Land Registry, L.E.K. Consulting Analysis HiFX, Bank of England (BoE), The UK Cards Association, CreditCards.com, EY analysis.
The future of SME banking
6
Traditional banks
  Lloyds Banking Group*
  Santander*
  HSBC
  Royal Bank of Scotland
  Nationwide
  The Co-operative Bank
  Clydesdale Bank
  Dankse Bank
Specialists
  American Express
  Close Brothers
  Bibby Financial Services
Changes in the SME banking 
landscape
New entrants to the market are capitalising on the previously unmet needs of SMEs
2
2.1  The market is awakening to the 
opportunity
Pre-crisis, the market was served primarily by traditional banks 
and specialists; post-crisis, a number of new entrants such as 
FinTechs and challenger banks have emerged.
There is now stronger competition in the UK SME banking 
landscape. A decade ago, an SME would turn to the traditional 
banks or to niche specialists for sources of finance. Today, there is 
a much broader range of options, with each provider striving for 
critical market share.
Figure 6: New entrants targeting SMEs
Market 
Landscape 
in 2007
A sample of new entrants, products and brands launched to the SME Market (20082017)
2008
Capify
Aldermore
2009
Funding Circle
Metro Bank
2010
Ezbob
TradeRiver
ThinCats
Funding Knight
Nucleus 
Commercial
MarketInvoice
Shawbrook Bank
2011
2012
Merchant Money
FOLK2FOLK
Pay 4
PayPal  SME Lending
2013
Spotcap
Lending Crowd
Fleximize
Amazon Lending
2014
Oak North
Growth Street
2015
Newable
Esme
2016
Redwood
Tide
2017
Traditional banks: incumbents offering a comprehensive range of 
products to SMEs and large corporates 
FinTechs: new entrants leveraging tech-enabled innovations to micro-
SME lending products and business models
Specialists: specialised, product-led players offering a narrow range of 
products to specified customer segments 
PayPal launches working capital loans to merchants in the UK 
Challengers: specialised banks targeting particular customer 
segments, including non-bank brands and digital-only banks that have 
emerged post-crisis
Amazon enters UK SME lending market offering small business loans 
to website companies
Legend  competitive segments
*Entities renamed post-acquisitions since 2007
Capital on Tap
365
Start up Loans
Iwoca
The future of SME banking
7
2.2  FinTechs are also disrupting the market
Additionally, a number of FinTechs are active in the business banking space, offering products and 
services to address a spectrum of targeted needs.
The table below shows a selection of FinTechs that have impacted the SME market in recent years.
Cash flow 
management
Accounting
Invoicing
Know Your Customer (KYC), 
identity and verification
Robotics and AI
Aggregator platforms, 
and data and analytics
Supplier loyalty
Cross-border and B2B 
payments
SME lending
Working capital 
optimisation
C2FO
Taulia
Ebury
Transpay
Dovetail
Traxpay
Traxpay
Funbox
Xero
Holvi
Tide
Sage Pay
Cashforce
Zervant
Invoice2go
ShoCard
Rainbird
Funding Options
Optiopay
Yoyo
Aimia
Funding Xchange
Validis
Plaid
Yodlee
DueDil
MX Group
Business Finance 
Compared
Softomotive
Persado
Automation Anywhere
Blue Prism
WorkFusion
Clinc
Trunomi
Onfido
Validis
Factern
EyeVerify
BioID
Kyckr
Tradeshift
Viewpost
TrustWeaver
Taulia
Budget Insight
Float
Flowcast
Strands
Rimilia
Aztec Group
Invapay
Currencycloud
Payoneer
OnDeck
Funding Circle
MarketInvoice
Modula
Ezbob
iwoca
Kabbage
WorldFirst
Ripple
Figure 7: FinTechs targeting the SME sector
The range of services offered to SMEs by FinTechs is both broad and deep, enabling SMEs to access new levels of financial services 
that were historically only available to corporate clients.
The future of SME banking
8
2.3  The regulator is incentivising 
this change
The Alternative Remedies Package was introduced 
in 2017 to boost competition through regulatory 
intervention.
In 2009, the European Commission approved a number of state 
aid measures granted to The Royal Bank of Scotland Group plc 
(RBS). This approval was given on the basis of a restructuring plan 
submitted by RBS and a number of commitments given by the UK 
Government, including the divestment of a part of RBS' branch-
based retail and SME business, which later became known as 
Williams & Glyn (the divestment).
As a result of considerable challenges in achieving the divestment, 
the UK Government proposed substituting the 2014 commitments 
with a revised package of measures, with the objective of 
promoting competition in the market for banking services to SMEs. 
The Alternative Remedies Package was agreed in principle in July 
2017 and formally approved by the European Commission on 18 
September 2017.
Fund
Details
Capability and 
Innovation Fund 
(425mn)
  The Capability and Innovation Fund aims at encouraging challengers to develop and improve their capability to compete with 
RBS in the provision of banking services to SMEs, to develop and improve financial products and services available to SMEs.
  This fund will be administered by an independent body and will comprise of 15 grants that eligible challenger banks and other 
financial services providers can compete for to increase their business banking capabilities.
  These awards will range from 5mn to 120mn and have been categorised into four pools:
  Pool A  for development of advanced BCA offerings 
  Pool B  to facilitate modernising existing BCA or new proposition development
  Pool C  to facilitate development of SME lending and payments 
  Pool D  to facilitate commercialisation of FinTech providing SME services
Incentivised 
Switching 
Scheme 
(350mn)
  The Incentivised Switching Scheme funds are to be used to encourage SME customers who were intended for 
Williams and Glyn (W&G) to switch their BCAs and loans to eligible challengers
  The funding aims to incentivise 120,000 relevant SMEs to switch their accounts to eligible challengers, comprised of:
  225mn paid in the form of 'dowries' to challengers to incentivise SMEs to switch their BCAs
  50mn to facilitate the switching of related loans
  75mn set aside by RBS to cover customers' switching costs
Aldermore
Aldermore was launched in 2009 as a specialist lender and savings bank to SMEs, homeowners, landlords and individuals. 
Key products include savings accounts, mortgages, invoice financing and asset finance. Following its acquisition by 
FirstRand, Aldermore is planning to employ investment from its new owner to accelerate the delivery of its business 
banking proposition.
Shawbrook Bank
A specialist bank founded in 2011 that focuses on the needs of SMEs and individuals, Shawbrook Bank offers savings 
products, loans, commercial mortgages and business finance. It is currently following a diversification strategy to expand 
into new areas such as motoring, online estate agencies and new propositions such as financing for IVF.
OakNorth Bank
A specialist lender launched in 2015 focusing on UK entrepreneurs and owner-managed businesses, OakNorth Bank was 
established on a cloud-based technology platform, using machine learning techniques and artificial intelligence tools. Key 
products include business savings, loans and property finance.
Redwood Bank
A 'born in the cloud' bank that launched four months after receiving its banking licence in 2017, Redwood Bank focuses on 
lending to local communities in the UK from offices in Letchworth and Warrington.
2.4 The rise of the challenger banks
More than 50 institutions have been granted a banking licence in the UK since 2008, with a number 
focusing on the SME banking market.
A number of challenger banks have emerged with a specific focus on serving the needs of SMEs, including those detailed below.
New challenger banks and fintechs have emerged that are successfully targeting a specific set of financial needs. These new challengers 
are not constrained by legacy processes or technology, and are able to offer targeted products and value-add services created 
specifically to meet the demands of the SME business.
The future of SME banking
9
2.5  The major high street banks 
are beginning to respond to 
disruptive forces
Businesses professionalise as they grow  and 
banks can help SMEs develop their financial 
maturity and capabilities.
Whilst focus may have been on averting the flow of consumers 
to disruptive players, the major high street banks are also now 
focusing efforts to retain their market share in the SME market.
A number of market forces are driving this impetus, stimulating a 
new critical period for the development of competition in the SME 
banking sector. 
Collaboration 
and 
partnerships
Banks are increasingly partnering with providers of 
SME services to increase the attractiveness of their 
proposition. NatWest has partnered with Sensibill, 
an electronic receipt management system which is 
built into the bank's banking app. Other banks are 
providing access to alternative sources of finance 
via select partners or discounted access to SME 
tools such as Xero accounting software.
Contest over 
the 700mn 
Alternative 
Remediation 
Package
Smaller rivals, including Clydesdale Bank and 
Metro Bank, are competing for funding from the 
Alternative Remedies Package. The pool, which 
will be funded by RBS as a result of regulatory 
pressure, will be available to a number of 
challenger banks and financial service providers, 
with the intention of creating further competition 
in the SME banking market.
Those high street banks that leverage their deep knowledge of 
business banking and sector specialisation (such as agriculture), and 
combine it with the richness of data available to them, will be able to 
offer increasingly competitive products and services to SMEs.
The future of SME banking
10
The evolving needs of the SME
Bespoke targeting of SME customers to address individual needs
3
3.1  Small business owners have 
unique needs, many of which 
are not addressed by traditional 
banking propositions
As a consequence of the complex needs of small 
business owners, SMEs are increasingly turning 
to challenger banks, FinTechs or non-financial 
institutions to service their financial needs. 
Techniques such as design thinking, improved customer 
experience and the use of internal and external data provide 
opportunities for banks, FinTechs or non-financial institutions 
to service SME financial needs by segment. Several examples 
identified by EY research are listed below:
The storefront entrepreneur
The factory home
The freelance plc
I need to meet my financial goals.
It's my name on the door.
I can't be great at everything.
My first year was critical.
I want more time with my customers.
I miss having peers.
I had to get the location right.
Digital is at the heart of my business.
I am open to collaboration.
Designing products and services around the jobs that SMEs need to do provides the basis for more targeted and innovative solutions. 
This can include addressing previously unmet needs such as cash flow management, working capital solutions and payroll services.
The future of SME banking
11
3.2  Targeting products to business 
life stages
There is a real opportunity to grow market share 
across existing products, by tailoring products for 
each SME segment. 
There isn't a 'one size fits all' approach to servicing SME 
customers. Rather, providers should tailor their proposition to 
service a specific SME segment or offer products according to 
the life stage of the SME. 
As small businesses grow, their needs become more 
complex  creating an opportunity to provide tailored 
products based on maturity stage, to help them realise the 
next stage in their growth journey.
Success rates for lending applications vary by the size and scale of 
an SME. As demonstrated in Figure 8, the success rate for lending 
increases as the business grows. 
84
82
86
89
89
2012
2014
2015
2016
All SMEs
Sole proprietors (0)
Micro-business
(19)
Small enterprise
(1049)
Medium enterprise
(50249)
44
41
37
37
37
38
38
35
32
32
33
34
58
55
49
49
46
49
70
67
61
60
59
64
73
73
63
61
64
73
2012
2013
2014
2015
2016
2017
All
Sole proprietors
(0)
Micro-business
(19)
Small enterprise
(1049)
Medium enterprise
(50249)
Figure 8: UK SME success rates in applications for finance (%)
Figure 9: SME use of external finance by size, %, 2017
External finance, such as bank loans and lending, is a key source of 
funding for SMEs. As shown in Figure 9, use of external finance is 
much higher amongst medium SMEs. In 2017, 73% of medium 
businesses (with 50249 employees) used external finance 
compared with 49% for micro-businesses (19 employees). 
Medium enterprises are a key area for business finance and 
consistently demonstrate approximately 50% higher demand for 
financing.
Whilst lending outcomes are broadly positive, the service and 
experience often fails to meet the needs of SMEs, presenting a 
sizeable opportunity for institutions that are able to deliver an 
exceptional customer journey.
Base: All SMEs that sought external finance in the last three years, %, 2017 
(886 in 2016)
The future of SME banking
12
3.3  Needs become more complex as SMEs grow
The businesses that constitute the SME sector are hugely diverse, with needs that depend on both their 
development stage and their industry focus. Small business owners want their bank to provide targeted 
solutions based on their business needs.
As shown in the following table, SME needs vary by the size of business.
Micro-business  
(19 employees)
Small enterprise  
(1049 employees)
Medium enterprise 
(50249 employees)
Corporate  
(250+ employees)
Example drivers 
behind need for 
working capital 
finance
  Day-to-day liquidity
  Smoothing out irregular 
cash flows with low level 
of predictability
  Releasing liquidity for 
growth
  Seeking less rigid, time-
consuming forms of 
finance
  Day-to-day liquidity
  Smoothing out irregular 
cash flows that may be 
highly predictable
  Releasing liquidity for 
growth
  Seeking less rigid, time-
consuming forms of 
finance
  Releasing liquidity for 
growth
  Performance metric 
management
  Investment for short-term 
projects
  Performance metric 
management
  Investment for short-term 
projects
Financial challenges
  Highest credit risk across 
all segments
  Generally find it difficult 
to provide security, but 
owners may be able 
to provide personal 
guarantees
  Limited financial data 
available
  Very limited ability to 
handle administrative 
burden
  Limited ability to handle 
multiple relationships 
with finance providers
  Higher credit risk than 
larger firms
  May find it difficult to 
provide security
  Limited ability to handle 
administrative burden
  Limited ability to handle 
multiple relationships 
with finance providers
  Higher credit risk than 
larger firms
  Limited ability to handle 
administrative burden 
and complexity of some 
traditional products
  Lowest credit risk across 
all segments
Level of financial 
engagement
  Generally no dedicated 
finance function
  Low awareness of 
financing options
  Relatively 
unsophisticated finance 
function
  Relatively low awareness 
of variety of financing 
options
  Sophisticated finance 
function
  Awareness of variety of 
financing options
  Sophisticated finance 
function
  High level of awareness 
of variety of financing 
options
  Ability to automate 
processing of payables 
and receivables
Businesses professionalise as they grow
Unless businesses professionalise, there is a risk the wrong 
financial products maybe used. 
As SMEs grow in size, they are more likely to engage financial 
specialists to professionalise and manage the complexity of 
financial products they use.
20
32
48
70
Medium
No employees
Micro
Small
Source: EY analysis/Harvard Business Review (HBR) 
https://www.bdrc-group.com/wp-content/uploads/2018/03/RES_BDRC_SME_Finance_Monitor_Q4_2017.pdf.
Figure 10: SMEs employing a financial specialist (%)
The future of SME banking
13
3.4  The emergence of ecosystems 
for SMEs is a global trend
The introduction of value-add services on top 
of traditional core banking offerings is allowing 
providers to position themselves in the centre of an 
SME's financial network.
Value-add needs 
Core needs
Omni-channel
Personalised 
services
Credit solutions 
and funding
decisions
Integration of
business tools
Expense 
management
FX and
 payments
Cross-border 
trade and 
assisstance
Risk
 management
Financing 
and  funding
Liquidity 
management
Integration of 
non-financial
services
Intelligent
automation
Market
insights 
Aggregation 
services 
Alliances and
 partnerships 
Fundamental needs 
As these value-add services become more prevalent, we will see an evolution of needs, 
with more becoming core and fundamental to the market.
In the face of constant competition within the SME banking market, 
providers need to provide a broader, more integrated offering 
with relevant value-add services. The provision of services beyond 
those traditionally offered within the core banking proposition will 
enable access to new revenue pools that may have been previously 
inaccessible. 
Moreover, strengthening the understanding of the SME market 
will reinforce and bolster their SME relationships. This will not 
only deter SMEs from switching, but will also widen access to 
information that can then be used to tailor current services and 
gain further insights into the SME banking sector.
Single provider
SMEs are increasingly looking for an easier way to meet all of their needs to run their business. This provides an opportunity for 
providers that are willing to address wider business needs to deepen their relationship with their SME customers.
Figure 11: SME value-add needs
The future of SME banking
14
3.5 SMEs want an omni-channel 
experience
Omni-channel banking provides seamless and 
consistent customer interactions through multiple 
touchpoints. Integrating digital and traditional 
channels into a truly omni-channel offering helps 
to anticipate and fulfil customer needs seamlessly 
across multiple channels.
A number of financial institutions are either developing or have 
recently launched digital offerings to the market. Whilst this 
will serve a significant proportion of the market, some SMEs 
will continue to demand an omni-channel experience in order 
to benefit from existing products and solutions such as cash 
management or alternative lending via intermediaries. 
Cash solutions 
For SMEs that want to maintain cash-based banking services, a 
digital-only service will not suffice.
Cash withdrawals and deposits 
Example: 
Handelsbanken
Example: Nationwide 
Building Society
Example: HSBC
Cash management
Safe deposit boxes 
Alternative lending 
A number of SMEs are happy to use online channels only; however, as needs increase in complexity, SMEs are more likely to use advisors 
and third-party intermediaries.
Provision of advice
Physical relationship 
manager
Skype or  
teleconference
Robo advice 
Whilst the use of online banking remains the main touchpoint 
between an SME and its bank, as demonstrated in Figure 11, 
SMEs are still engaging with their bank via traditional channels 
for business purposes:
  43% of SMEs have used their branch in their past three 
months compared with 29% using mobile banking.
  Personal relationship management continues to be 
an important offering which SMEs are using, with 17% 
interacting with the relationship manager in the past 
three months.
Those wanting to provide the most comprehensive SME proposition will need to provide an omni-channel experience, either 
through their core offering or by tailoring any targeted proposition to the need of SMEs, i.e., provision of branch-based banking for 
SMEs that have identified the need for cash solutions.
Figure 11 : Financial services used by SMEs in the 
last three months for business purposes (%), 2017
85
43
29
22
17
16
16
6
6
5
4
Online banking
Branch-based banking
Overdraft
Telephone banking
Mobile banking
Personal relationship managers
Cashier desks for business customers
International business transactions
Extended branch opening times
Business planning advice
None of these
The future of SME banking
15
3.6  SMEs' advanced customer 
needs are not being met 
consistently
Despite the emergence of challenger banks and 
FinTechs, there is a gap between the increasing 
expectations of SMEs and what is being offered by 
incumbent players in the market.
Whilst there have been some new offerings to the market, the pace 
of change has been slower than demanded by some SMEs, and 
offerings can appear to be undifferentiated or based on the retail 
banking product. Propositions across the market show gaps in 
fulfilling the full suite of SME customer needs.
High street banks
Challenger banks
FinTechs
Current proposition
  SME proposition, including BCAs, 
offered by all major banks
 Wide product range, but service 
focused on low cost only 
  Strong insurance capabilities
  Specialised propositions based on 
knowledge of the SME market
  Specialised proposition usually 
based on specific SME need, 
e.g., lending solutions
Areas of strength
  Brand loyalty
  Low switching rates
  Products across full SME 
growth spectrum
  Customer contact options 
(branch, online and telephone)
  Products created to serve specific 
segments or industries
  Longer-term lending solutions
  Flexible lending options
  Personalised approach
  Digitally enabled offering built on 
new agile platforms without the 
constraints of legacy systems
  Frictionless processing and pace of 
change to introduce new feature-
rich functionality
Areas of focus
  Innovative offerings via digital 
platforms and increased speed 
to market
  Catering to other service needs of 
SMEs e.g., accounting, HR, payroll
  Personalising solutions
  Using data more effectively to meet 
SME needs
  Building market share
  Developing transactional 
banking propositions
  Expanding suite of services 
to include value-add such 
as accounting and cash flow 
management (CFM)
  Customer contact options
  Developing in-house capabilities as 
businesses scale
  Partnerships and alliances to 
provide a complete solution offering 
to SMEs
3.7  What options can be employed 
by players in the market?
We expect there to be a number of pathways that 
will be employed by key players to provide the full 
spectrum of new innovative products and services 
required by SMEs. Banks will no longer dominate 
the provision of SME financial services. New 
application programming interface (API)-enabled 
platforms and mega tech platforms will start to 
target the SME sector.
Ecosystem 
and platform 
approach
New API-enabled platforms will enable providers 
to deliver a wide range of innovative third-party 
products and services, generating consumer 
stickiness and creating a network effect as the 
number of ecosystem participants expand.
Tech companies 
offering the 
full suite of 
services
Tech giants could enter financial services by 
extending their platform to provide core banking 
services such as BCAs and lending. 
Furthermore, the big tech platforms could leverage 
the abundance of customer data, advanced data 
analytic techniques and frictionless user journeys 
to offer new propositions such as cash flow 
management and working capital solutions.
These key pathways are described in more detail in the 
following sections.
The future of SME banking
16
The future: SME services in a 
platform world
Finding the right pathway for your business
4
4.1  It is not possible to ignore 
the rise of platforms and the 
development of ecosystems
Financial institutions must choose what role 
they want to play in the new world of open APIs. 
Options exist to create an API-enabled ecosystem 
market in the SME finance value chain, providing 
innovative third-party products and services to 
SME customers.
The prevalence of API technology in the ecosystem will also 
play a part in transforming and digitising relationships with 
SMEs, changing the way in which products and services are 
made available. 
In an ecosystem where SME customer account and transaction 
data can be shared, the process of finding and applying for 
banking services, such as credit, will be quick and seamless.
The rise of API-enabled platforms
An API-enabled platform is a digital infrastructure that allows 
multiple stakeholders (the providers  platform owners, third-
party developers, distribution and services partners  and 
end-users) to connect online, interact, and create and exchange 
value with each other. Participants in platforms shift from 
operating within a specialised industry to being part of a broader 
ecosystem, expanding their reach by linking to interconnected 
businesses from across multiple sectors. Operating in an 
ecosystem allows providers to fulfil customers' needs through 
an integrated user experience, raising collective value for all 
participating stakeholders involved. 
These API-enabled platforms are based around four key principles:
1
Data
They are powered by interconnected customer data. Data is the collective digital asset upon which entire ecosystems are 
built, allowing providers to utilise integrated customer information and new data insights captured within their platforms 
to determine product strategies, identify new market opportunities or craft new commercial opportunities.
2
Customer-centric 
gateways 
The ecosystems within platforms are highly customer-centric marketplaces that allow consumers to access and switch 
between a range of related offerings across different providers without needing to toggle between portals or manage 
multiple login identities. An example of such a frictionless gateway is Facebook Messenger, which enables users to 
instant message, make voice and video calls, transfer funds, place reservations, interact with retailers and play games 
amongst other features.
3
Network effect
They create a network effect as their ecosystem of participants expands. Well-constructed platforms take on a 
momentum of their own as participants interact, generate reciprocal value and help extend these ecosystems. As 
ecosystems grow exponentially, providers are collectively able to deliver a wider range of solutions and generate 
consumer stickiness. This, in turn, creates much greater distribution and access to a broader range of customers than 
could easily be achieved by any single company.
4
Open APIs and 
standards
Solutions on platforms are built using open APIs and standards, creating new distribution opportunities via partner 
technologies and channels, and facilitating expansion into complementary services or new, adjacent businesses. Given 
the more diverse community of providers, customers also benefit from feature-rich experiences and a much wider scope 
of offerings compared with the original platform.
The future of SME banking
17
From this ...
To this ...
Traditional value chain: product focused
Platform-based models: customer obsessed
 
Typically singular provider
 
Purpose-built solutions, with independent product offerings
 
Proprietary protocols
 
'Command and control' product development methodology 
 
Slower time to innovate via a linear value chain (development, 
distribution and marketing to the consumer)
 
Diverse community of providers (platform owners, developers and 
partners) and customers
 
Solutions are built on an extensible platform, leveraging 
open standards
 
Offerings are interoperable, feature-rich and targeted 
 
Flexible, iterative development and crowd-sourced innovation
4.2 Transitioning to a platform-driven business
Financial services providers are transitioning from a linear value chain to platform-driven 
business models.
Platform-based models in financial services
Platforms and their ecosystems are most mature within consumer-
centric verticals such as health care and medical advisory, 
travel, real estate and financial services. In financial services, an 
ecosystem encourages financial institutions (FIs) to go beyond a 
proprietary, product-oriented approach (see table above) and work 
with partners to deliver comprehensive solutions that can simplify 
customers' financial lives. 
For instance, insurers are embedding themselves into wider 
ecosystems for mobility, connected homes and cars, health 
diagnostics, medical advice and financial planning. Global 
payments technology companies, such as Visa and Mastercard, 
have platform strategies to connect card issuers, acquirers and 
other payments service providers to merchants and consumers for 
seamless e-payments. 
Ideally, these innovative delivery models should embed customers' 
financial interactions as part of their daily activities (such as 
shopping and entertainment) and help them achieve financial 
goals (such as funding business expansion, property ownership or 
a trade acquisition). 
This is possible due to rich customer data that enables FIs and 
their ecosystem partners to better understand customers and 
develop personalised or contextual offers that satisfy their current 
and perceived future needs.
Where there are regulatory mandates requiring open API policies, 
customers also benefit from new third-party collaborations. In 
those markets, customers' options for financial solutions will 
evolve from the current linear model to one where products and 
services are not limited to an individual institution's offerings. 
We expect to see financial platforms further evolve to digital FI 'app stores', where customers can select desired services from 
multiple providers to build their own bespoke financial experiences.
The future of SME banking
18
4.3  Ecosystem and platform 
approach
A platform model is not only a new evolution of the 
banking business model; it also involves a major 
shift in culture and mindset. It implies building 
long-term win-win partnerships with an ecosystem 
of external providers to fulfil the holistic needs of 
SMEs.
Recognising the elements of a platform enables 
providers to decide where to focus.
Simplified description of the platform model
User interfaceData and integrationDigital ecosystemProducts and servicesThe user interface is the backbone of the SME customer 
experience, enabling the distribution of proprietary or 
third-party products.
The data and integration layer, built as an open 
platform, is connected to the digital ecosystem, with its 
own data layer and business process management.
The products and the services support the design and 
development of components that can be monetized to 
serve the needs of SMEs.
Financial institutions could adopt a number of 
platform scenarios as part of creating a future-
proof SME bank.
EY has identified five ways financial institutions can reshape their 
future. In each of these, the provider takes on a new role, focusing 
on different building blocks of a typical bank.
Financial providers could decide to reflect holistically and define a 
model that the entire organisation reshapes towards. Alternatively, 
they could adopt different models for different parts of the 
banking value chain: for example, for a particular market, product 
or service line. 
As a result, providers may adopt one or several future banking 
models. We have provided a high-level view of five scenarios 
below.
Scenario 1: Producer 
integrated model
The provider will supply integrated financial operations and technology, either as a full end-to-
end banking proposition or for specific products or markets on a white label basis.
Revenue is 
generated by the 
organisations 
buying products 
and services from 
providers.
Scenario 2: Facilitator
The provider will offer specific components, rather than the full end-to-end proposition, such 
as KYC, management information, underwriting processes and data analytics. 
Scenario 3: Service 
provider
The financial organisation will compete with other providers, operating like an IT outsourcing 
provider but with banking ability.
Scenario 4: Marketplace 
provider
The marketplace provider will be convenient for customers and attractive to third parties. 
This may include the creation of new value propositions, such as extending banking with non-
banking products and services.
Revenue is 
generated by the 
end customer.
Scenario 5: Experience 
provider
The experience provider will need to provide a superior customer experience that can attract 
high volumes of new customers and increase the loyalty of existing customers.
The future of SME banking
19
4.4 What questions should be asked 
when addressing platform options 
for SMEs?
1. Customer
In a platform-based model, the relationship model with SME 
customers may change. Banks are at risk of becoming a utility 
in the SME value chain, providing SME customer account data to 
FinTechs and aggregators.
How will you maintain existing relationships with your SME 
customers when third-parties become a key part of the 
value chain? 
2. Revenue and profitability
The increased transparency enabled by open banking will increase 
transparency, choice and competition for SMEs, potentially 
reducing brand stickiness and eroding profit margins.
If traditional revenue sources are eroded, how will you ensure 
that SME financial products remain profitable? How can you 
leverage the platform model to create new sources of revenue 
(e.g., enhancement of SME products and services enabled by 
new insight provided by FinTechs)?
3. Risk and regulation
A platform-based banking model introduces new types of risk. 
These risks are amplified by the growth of open banking and the 
prevalence of API technology. Providers must consider the risk 
associated with moving to a platform-based business model.
Can the provider protect itself against the regulatory and 
conduct risks associated with adding new participants to the 
value chain?
What security vulnerabilities does the financial organisation 
need to protect itself (and its customers) against in the world 
of open APIs and shared data?
4. Technology and scalability
Building or participating in a platform ecosystem requires 
significant technological transformation. FinTechs have the 
flexibility to build new solutions at pace with changing customer 
needs. Banks must possess the fluency to align and integrate with 
these FinTechs.
How should the bank upgrade its legacy systems to meet the 
demands of a platform-based model?
What processes can be automated to provide friction-free and 
streamlined operations, so that the provider's capabilities can 
be delivered in real time as a platform-based service?
How should the provider update its development approaches 
(e.g., Agile adoption, DevOps)?
The future of SME banking
20
The rise of 
technology firms
Mega tech platforms target the SME sector
5
5.1 Tech companies could offer the 
full suite of services
Technology firms are recognising the challenges faced by small 
businesses in obtaining finance. Technology and e-commerce 
firms are using data to reinvent SME lending and disrupt the 
traditional business banking model.
These organisations have an abundance of data about merchants' 
finances and business operations, and use machine learning to 
study trends and predict future creditworthiness. This not only 
enables well-informed lending decisions, but also replaces the 
more manual services historically provided by traditional banks. 
Many of these platform companies rely on e-commerce merchants 
for their revenue, so there is a mutually beneficial interest in 
providing working capital to SMEs.
The advent of open banking will only increase the availability of 
data in the industry, and providers should consider whether they 
need to adopt a partner-based model to avoid losing market share 
to new technology entrants.
Tech and e-commerce companies are already 
disrupting the market
Technology firms are already providing services which mirror 
traditional SME banking products provided by high street banks. 
Outlined below are a number of example services provided by 
technology firms which are disrupting the market.
Traditional banking
Product alternative solution 
Overview
Current accounts
Cash solutions
  A number of tech firms are providing their customers the ability to shop without a 
debit or credit card number on their e-commerce platforms or in stores by using a 
personal barcode or mobile number.
  This functionality could be extended further across multiple points of sale (POS) 
and rival traditional personal and business current accounts.
Business credit cards
Revolving credit line solutions
  A major US technology firm has launched a 'revolving credit facility' for SMEs.
Lending
Lending solutions
  A US technology firm has partnered with a banking partner to provide loans to its 
merchants.
 Whilst the current partnership allows the tech firm to better manage its credit risk 
exposure, should it build a credit risk capability, it would be able to lend off its own 
balance sheet.
Payment solutions
Payment solutions
  A number of technology firms have launched their own payment solutions for 
e-commerce companies where they can accept online and mobile payments via 
their payment facilities.
The future of SME banking
21
Area
Impact
Key consideration for banks
Customer
  SMEs' and online merchants' trading and working capital 
requirements can now be met in the same place by 
technology firms.
  Furthermore, the scale and depth of the data used by 
these firms is unmatched by traditional banks. If non-
financial services firms are better equipped to understand 
SME needs (particularly online merchants), banks will 
need to reconsider how they should manage customer 
relationships.
  On the other hand, banks' established relationship 
management models may continue to anchor the customer 
to their existing banking relationships.
  Is the bank better off refocusing its efforts, and 
allowing online SMEs and merchants to be financed by 
technology firms?
 Would a partnership model be more beneficial? 
  Should the bank begin to offer any non-banking tools to its 
SME customer (e.g., financial management tools)?
Revenue and 
profitability
  In an era where technology firms are using predictive 
analytics to tailor financial products, banks will not be able 
to rely on traditional revenue sources, such as interest 
income and fees.
  Traditional banks' focus on the performance of their 
loan portfolios may also need to be reconsidered. Tech 
companies' income in the SME space will be generated 
by offering more tailored products such as cash flow 
management, payments and lending.
  Banks must also face the challenge of keeping operating 
costs down in the face of digital channels employed by 
technology firms.
  Does the bank need to re-assess its revenue model and 
consider moving away from reliance on traditional sources 
of income?
  How can the bank keep its operating costs low whilst 
serving the interests of its SME customers (e.g., process 
automation)?
Risk and 
regulation
  Technology companies may be able to use data to make 
better decisions than traditional banks. As such, they can 
sub-segment the SME market by risk profile, targeting 
SMEs according to risk appetite.
  How can the bank manage credit risk whilst serving the 
interest of its smaller merchant customers?
  If technology firms are offering unsecured lending options 
to SMEs, how can the bank do the same?
5.2 Technology firms are disrupting banking
Whilst a number of areas will be impacted by the entrance of mega tech platforms, we have focused on 
three below and outlined some of the key considerations for banks.
The future of SME banking
22
Closing the gap: how do you 
create a future-proof SME bank?
Making the transition from bank to business partner
6
6.1 Closing the gap: deciding where 
to excel in building an SME offering
Digitisation provides an opportunity for new ways 
of working, deciding where to excel and how to 
differentiate. The starting point and strategy of the 
SME offering will determine the actions that need 
to be taken. Detailed below are five areas of focus.
Transformation 
required for 
SME services
1. Be digital 
Challenging existing business models to 
industrialise innovation and operational agility, 
creating new sources of value based on novel 
banking products and services
2. Digitising legacy 
Transforming core functions by upgrading 
outdated IT systems and processes to provide 
a new wave of innovation, such as rapid 
elasticity
5. Digital trust 
Operating a secure, compliant and protected 
environment to serve SMEs across both 
physical and detail channels
4. Digital platform thinking 
New API-enabled financial marketplace, 
accelerating innovation and generating new 
commercial opportunities
3. Experience thinking 
Providing the blueprint for experience 
strategy that enables market growth and 
differentiation
1
1
1
2
2
2
2
2
3
3
3
3
3
4
4
4
4
4
5
5
5
5
5
Transform
Reactive and 
unplanned
Siloed products  
stack
Undifferentiated 
experience 
Legacy  
technology
Innovate
Robust, resilient and 
protected
API-enabled 
marketplaces
Customer journey 
differentiation
Cloud- 
enabled
EY's digital enterprise transformation services are delivered by practitioners who are passionate about the contribution of SMEs to 
our economy. For more details, please contact one of the authors of this paper.
The future of SME banking
23
SME banking team
Key contacts
Anita Kimber 
Digital Lead 
anita.kimber@uk.ey.com 
+ 44 7775 004 847
Peter Neufeld 
Customer Experience Lead
pneufeld@uk.ey.com  
+ 44 7467 441 864 
Ian Alderton 
Technology Advisory 
ian.alderton@uk.ey.com 
+ 44 7702 777 770
Hamish Thomas 
Technology Advisory
hthomas@uk.ey.com  
+44 7967 176 593 
Adam Vardy 
Banking and Capital Markets
avardy@uk.ey.com 
+44 7734 863 266 
Thomas Bull 
UK FinTech Lead
tbull1@uk.ey.com  
+44 7775 750 395
Ehsan Ashraf  
Banking and Capital Markets
eashraf@uk.ey.com 
+44 7557 180 345
Vikram Kotecha 
Corporate Finance Strategy
vkotecha@uk.ey.com  
+44 20 7951 8147
24
The future of SME banking
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