63% of SMEs Haven’t Switched Business Account Provider in Five or More Years: A Report by Revolt Business

Almost a quarter of SMEs have not exchanged business account provider since 2008. 63% have had similar provider for over five years.

That is according to a report from Revolut Business, the report uncovers that SMEs are staying with traditional financial services providers regardless of new demands from digital-first businesses.

In the UK 27% of UK respondens refered to proximity to branches as key factor in the selection of their present business account providers.

Over half of SMEs now do some type of international business and a further 13% expect to start doing so soon. In 2008, sixty percent of all transactions were paid in cash. Quick forward to a decade  after the fact and payments come in a wide range of methods. 34 of SME clients are paying by bank transfer, 23% with cash, 23% by credit/debit card and 19% by other methods.

A little over a quarter of SMEs additionally expressed they still visit a physical branch of their provider every day. Over half say they sometimes or never call their provider and just under half seldom or never visit a branch. Conversely, 43% of SMEs use web/application interfaces to deal with their business accounts every day and a further 30% do so week by week.

Nonetheless, the findings suggest the status is set to change, with just under half of SMEs revealing that they are looking to change business account providers in the following a year.

What SMEs value in business account partnerships is telling. Eighty percent of SMEs picked out 24/7 access to their accounts as important. Security (89%), transparency of charges (89%) and low fees (86%) were also rated highly.

SMEs’ desired attributes of a business account supplier are also revealing. A big part of SMEs need a business record to be easy to understand – the most well known quality among respondents. Automation of regular tasks (28%) and ‘perks’ (25%) were the next two most desirable attributes.

“Most SMEs have stuck with longstanding, traditional business account relationships, but this is set to change,” said Vaidas Adomauskas, Head of Product, Revolut Business. "Today’s global SMEs are embracing accounting or collaboration solutions such as Xero and Slack, that make running a business easier. They’re looking for features that make running their business finances faster, more flexible, and more friendly toward global growth."

"Our research reveals that SMEs are expecting a similar business account service," said Adomauskas, "They’re less reliant on cash and physical branches and more focused on user-friendly experiences across web and mobile. Naturally, the forty-two percent of SMEs looking to switch business account providers in the next twelve months will gravitate to those offering digital experiences that save both time and costs – leaving SMEs to focus on growing their business".