Almost 85 per cent of SMEs are “frustrated” with their business banking experience, while three-quarters say banks “must do more” to offer a better digital experience, according to research.

Card issuing platform Marqeta commissioned research among 400 SMEs (employing 10 to 250) and found that digital banking services had been vital for SMEs during the past year.

Almost four-in-five (78 per cent) said the COVID-19 outbreak had made them more reliant on digital banking than ever before.

With FinTechs offering SMEs more digital alternatives than ever, traditional banks had to pull their socks up or lose business, found the research.

Almost nine-in-ten (89 per cent) said it is important that banks offer more digital services within business banking post-COVID-19, and more than two-thirds (67 per cent) would move if their business bank account provider was unable to provide better digital capabilities.

The research also found that 28 per cent have changed business bank accounts in the last two years, citing better online and digital customer support (31 per cent) and better services (29 per cent) as the main reasons for switching.

And overall, 68 per cent say the digital features of business bank accounts aren't as advanced as consumer bank accounts

The biggest frustrations with their existing business bank accounts SMEs cited were restrictions in what they can do on digital platforms without paying more (33 per cent), lengthy lending decisions and inflexible credit offerings (30 per cent), and difficulty integrating business bank accounts with other business systems, such as accounting (29 per cent).

SMEs said they wanted the ability to track income and expenditure in real-time from their business bank accounts (82 per cent), and the capability to send, pay and track invoices directly from their accounts (80 per cent).

Ian Johnson, managing director for Europe at Marqeta, said: “SMEs are craving digital banking experiences but have previously been limited by what’s on offer.

He added:“In the onset of the COVID-19 pandemic digital channels became the only way for SMEs to manage finances, apply for loans and make payments - so they had to adapt and they aren’t keen to go back to the old ways.”

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