Small-Medium Enterprises (SMEs) make up 99.9 percent of all businesses in the UK, yet banks are failing to address the opportunity that this diverse segment presents. The current focus on high quality basic banking services at low cost will no longer fit the needs of SME customers, and banks run the risk of losing relevance and revenues to more digitally savvy providers.

An Accenture commissioned survey of 1,000 SMEs across all sectors has revealed more than 60% of businesses would use their bank if value-added services were offered. The potential reward for banks that better engage SMEs is £8.5 billion in new revenue streams by 2020.

But they must move fast, as the threat of competition, including from outside the financial services industry, is strong. The good news is banks are well-placed to take advantage of the perception gap between what SMEs want and what banks can provide. By changing the conversations from cost to value and shifting to a ‘business partner’ outlook, they can fill the opportunity.