Revolut Business: 63% of SMBs haven’t changed business account provider for five years or more
Research shows that SMEs are no better served by today’s financial service providers in the face of fractured payment methods and the challenges of international trade.
Revolut Companyan innovative global business account designed for growth, speed, ease and security, today released the findings of its “Vision 2020: A closer look at outdated banking practices” report. Based on a survey of 602 UK, French and Polish SMEs, the report reveals that SMEs are staying loyal to traditional financial service providers despite new demands from digitally-focused businesses.
More than half of SMEs are now doing some form of international business and a further 13% plan to start doing so soon. In 2008, sixty percent of all transactions were paid in cash. Fast forward to a decade later and payouts come in a variety of different methods. Thirty-four of the SME clients pay by bank transfer, 23% in cash, 23% by credit/debit card and 19% by other means.
Despite this, nearly a quarter of SMEs have not changed business account provider since 2008. In total, 63% have had the same provider for more than five years. Why? Thirty-eight percent of SMEs in Poland and France, and 27% in the UK, cited branch proximity as a key factor in selecting their current business account providers.
Slightly more than a quarter of SMEs also declare that they visit a physical branch of their supplier on a daily basis. More than half say they rarely or never call their provider and just under half rarely or never visit a branch. On the other hand, 43% of SMEs use web/app interfaces to manage their professional accounts on a daily basis and an additional 30% do so on a weekly basis.
However, the results suggest that the status quo is about to change, with just under half of SMBs revealing that they plan to switch business account providers within the next twelve months.
What SMBs value in business account partnerships is telling. 80% of SMBs said 24/7 access to their accounts was important. Security (89%), fee transparency (89%), and low fees (86%) also received high marks.
The attributes that SMBs want from a business account provider are also telling. Half of SMBs want a business account to be user-friendly – the most popular attribute among respondents. Automation of regular tasks (28%) and “benefits” (25%) were the next two most sought-after attributes.
“Most SMEs have stuck with long-standing, traditional business relationships, but that’s about to change,” said Vaidas Adomauskas, Product Manager, Revolut Business. “Today’s global SMBs are adopting accounting or collaboration solutions like Xero and Slack that make running a business easier. They’re looking for features that make managing their company’s finances faster, more flexible, and more conducive to global growth. Traditional business accounts just aren’t eam”
“Our research reveals that SMBs expect similar business account service,” Adomauskas said, “they are less dependent on cash and physical branches and more focused on user-friendly web and mobile experiences. forty-two percent of SMBs looking to switch business account providers in the next twelve months will look to those that offer digital experiences that save both time and cost, leaving SMBs to focus on the growth of their business.
For more information on current SMB business account relationships and priorities, download our “Vision 2020: A closer look at outdated banking practices» white paper, here.