The SME sector accounts for just under 50% of the UK’s private sector turnover, the technology firm said in a report.
The report which surveyed 1,000 SMEs in the UK has found that they need more value-added services to meet their business requirements and the banks have an opportunity by providing them with more tailored offerings.
Currently, 58% of the SMEs in the country select a bank based on low cost, while 56% rely on the quality of service. In contrast, only 4% of them pick a bank by taking into value-added services offered by it to improve business performance, customer service and sales, the report said.
The repot titled "SME Banking 2020; Changing the Conversation," surveyed SMEs about perceptions of their bank, including the relevance of products and services offered.
The survey said that 63% of the SMEs are satisfied with their main bank, while one-in-five confirmed that there was nothing that their bank could do to improve their satisfaction.
But the report has found a clear requirement for value-added services among SMEs, with 60% of them showing evincing interest to choose banks offering such services that also including bitcoin and peer-to-peer lending.
"This suggests a significant perception gap among banks and SME’s around what SMEs want and what banks can provide, leading to a missed opportunity for UK banks and potentially a lack of the right support for SMEs to grow," the report said.
Besides, the survey has identified a need for banks to play a more active role in their relationship with SMEs, as 60% of the participants want to have a closer engagement with their bank.
While 32% want their bank to be proactive in suggesting ideas, and 28 percent want their bank to recognize that their needs may not be simple and provide more complex services on demand.
The report has also identified an opportunity for banks to apply the digital channel strategies for retail customers to the SME segment.
Though SMWs prefer for human interaction over digital services, the report has found opportunities for bank in migrating the services such advice, applications, complaints and non-banking services to digital channels.
Accenture banking practice lead for the UK/I Gareth Wilson said: "SMEs want banks to be more relevant and provide a wider range of business services. Banks need to recognise and seize this opportunity.
"Unless they do, SMEs may take their business elsewhere. Banks need to shift their mindset from ‘FS service provider’ to ‘SME service provider.’
"Through new technologies and new thinking, banks can capitalise on £8.5 billion of potential annual revenues. If they don’t they risk being disrupted out of a market that SMEs actively want them more involved in."
Image: UK banks could earn £8.5bn by expanding services for SMEs: Accenture. Photo courtesy of Serge Bertasius/FreeDigitalPhotos.net
