The problem to solve
2020 saw The Co-operative Bank commit to transforming its digital services for SMEs. By understanding the evolving challenges faced by SMEs, the bank sought innovative solutions to better serve UK businesses.

Are SMEs underserved by banks?
Short answer: typically, yes. However, 2020 saw The Co-operative Bank take strides in their business banking offering by transforming their digital services to directly meet the needs of SMEs. Wanting to understand the challenges faced by SMEs further, the bank sought innovative solutions to better serve this traditionally ‘underserved’ market.

If you’re a small business, you’ll know the struggle that late payments can cause by crippling your cash flow and stunting your growth. Back in 2022, The Federation of Small Businesses (FSB), issued a warning that 444,000 small businesses would be forced to close as a result of late payments, with each business being owed on average an estimated £22,000 in late payments... | read more

According to new customer data from embedded banking provider, BankiFi, businesses from a wide range of sectors continue to trust payment links such as SMS, email and QR codes when requesting payment on invoices, particularly when the relationship between buyer and sellers is already known. The trend comes despite years of warning from banks about a perceived heightened app fraud risk through payment links.

To mark its attendance at this year’s SIBOS conference, the company has revealed some eye-opening stats accrued following the launch of numerous app-based payment solutions with banks across the UK, including The Co-operative Bank and TSB. The insightful data highlights that businesses across dozens of sectors continue to place considerable faith in the power of text, email and QR codes to chase payments in situations where the buyer and seller know each other personally. | Read more....

The BankiFi platform is designed to help small businesses access capital when they may otherwise not meet the criteria for traditional high street banks. Praetura, backed by BankiFi’s tech platform, will deliver asset and invoice finance to SMEs on behalf of banks unable to support those businesses.

Many banks don’t provide asset or invoice finance solutions, and those that do typically focus on larger businesses that are more likely to meet their lending criteria.

BankiFi and Praetura’s new solution looks to empower traditional lenders to meet the diverse financing needs of the UK’s small businesses, with Praetura adopting the risk of the initial investment. Banks are then positioned as the go-to finance provider, with businesses referred back to the bank once they’ve grown into the eligibility criteria.

According to the Bank of England, all net growth in UK SME lending since 2017 has come from smaller banks or alternative lenders rather than traditional banks... | Read more