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Traditional Banks: Lack of innovation and support

by Nasim Khan05 Jul, 2019← Back To Blog

SMEs still feel underserved by banking services in the UK. The lack of specific and innovative provision for SME needs and the little choice or incentive to switch banks is a major discussion point amongst SMEs.

59% of SMEs have stated they have experienced limited customisation to their needs from traditional banks and 40% of those surveyed said they see little difference between the current business accounts and the retail banking accounts available to consumers, with the difference in services being the higher cost of business banking. Many SME owners are demanding a new approach to banking after feeling side-lined by major players.

There has also been a major plummet in funding to small businesses from the banking sector in the decade since the financial crisis. This has had its consequences including holding back job creation and economic growth according to a recent study.

Muse has found that despite a large rise in the number of small and medium-sized businesses in the UK the availability of capital to help them grow has stalled after a deep analysis of Bank of England figures.

Nationally, the amount loaned to small companies has declined by 27% since 2009, despite the number of companies in the country overall having increased to more than six million.

Analysts at finance firm Growth Street, which carried out the research, said this level of lending was insufficient to sustain growth for the SME sector and was having a knock-on effect of stifling employment and productivity.

With a wide variety of alternatives, SMEs are looking for a different approach to lending and banking, and increasing numbers are joining a revolution in mobile finance. Some companies have felt they have been treated unfairly by traditional banks and cannot get access to the vital funds they need quickly enough to grow their business.

Muse is dedicated to improving the services offered to SMEs by building digital tools which allow SMEs to access working capital in a streamlined manner and by giving SMEs greater control of their finances.

This sprint we have built the ability for a user to connect their business bank accounts to our dashboard. This gives a broader view of your financial position and means you don't need to leave our app to view your balances and transactions helping Muse give business owners better insight into their finances.

Don't forget to read our article explaining all the features we've rolled out in beta and where our app is going next. We have built several tools to help you save time and make better financial decisions.