How Banks Can Turbocharge SMEs Post‑Brexit
Brexit has put the UK’s economic engine on the brink of a new gear, and the engines most likely to rev up are the tiny, agile engines of the SME world. Think of SMEs as the country’s beating heart—crunching out a staggering £2 trillion of turnover and employing 60 % of every private‑sector job. If the UK wants prosperity in a post‑Brexit era, it will have to fuel that engine.
Why SMEs Are Everyone’s MVP
- 99.3 % of all private‑sector businesses are SMEs.
- They side‑kick 16.3 million people into employment.
- They generate over half of the country’s private‑sector revenue.
In short, the SME sector is the secret sauce that will decide whether the UK stays flavor‑rich or turns bland after the trade talks.
The Biggest Hurdle: Banks That Hate Customers
For years banks have let a tidy product catalog dictate how they run. Each product—loans, cash‑management, trade finance—has its own silo. The result? A bewildering maze for SMEs that would make a labyrinth look simple. And let’s be honest: no one likes a maze. The banking maze pulls at time, money and patience. That’s why SMEs often find themselves the last to get a loan or are offered higher rates because there’s simply not enough data to trust them.
Three Power Moves Banks Should Play
1⃣ Put SMBs at the Front of the Line
Imagine a bank that treats you as the whole story, not just as a loan or a deposit. Instead of juggling several departmental headaches, the bank delivers a seamless, friction‑free experience. Spend less time waiting for approvals, more on growing your business.
2⃣ Make Banking a Swiss‑Army Knife
- Offer one‑stop services from digital invoices and tax filing to property maintenance kits.
- Leverage existing bank IP for AI‑driven data fraud alerts and IT support.
- Drop the endless paperwork—use e‑signatures and instant data capture.
The goal? Reduce the lurch of complexity and get SMEs to the “use fewer providers” mindset.
3⃣ Shake Up the Old Playbook with Modern Tech
AI isn’t just for sci‑fi movies. Use it for:
- Fast customer onboarding via automated KYC checks.
- Predictive credit scoring that reduces default risk.
- Design‑thinking & agile teams that iterate product ideas faster than a fast‑food taker’s takeaway service.
Why stop at tech? Standardise processes—take the tedious Letter of Credit condition and fire it up to a single, reusable framework. This unlocks huge data pools on identity, transactions and even invoices, letting banks build smarter models and price risk more accurately.
Why It’s Not Easy (but Totally Worth It)
Patience required: legacy IT, product mindset, and a bland culture of “banking is boring.” Yet whoever had the power to change this—whether Netflix or Domino’s—couldn’t resist a chance to turn the experience into something slick and delightful. Banks have the capital and reach; they just need bold leadership to shift from “a product” to “a customer journey.”
The Bottom Line
When banks help SMEs become more productive through better tech and smoother processes, the spill‑over effect is felt across the whole UK economy. Stronger growth, higher productivity, and a resilience against whatever post‑Brexit terrain lies ahead.
So, banks, the time to rev up the SME engine is now!
