Open Banking spells disruption for banking providers that serve small and medium-sized enterprises (SMEs).
In August 2018, KPMG asked 1,000 SMEs for their views on Open Banking, testing their willingness to share data with a third-party under 13 different scenarios. What we found is that opinion is polarised and UK SMEs fall under three distinct types of customers, each with different appetites for Open Banking. In this report, we explore these customer types and identify the strategies most likely to persuade them to adapt, pay for, or switch supplier to access Open Banking services.
Competition for a share of the SME banking market will only intensify. As financial services firms deliver on the value promised in their Open Banking propositions, KPMG fully expects SME uptake to increase. It is down to financial services providers to identify and implement the right tactics and business models to cater to these different customer groups and to deliver the services, products and assurances that each needs.
Limited appetite for Open Banking: The ‘steady conservative’ makes up 42 percent of respondents. They are typically low-growth, small and simple businesses
Some appetite for Open Banking: The ‘moderate may-be’ accounts for 28 percent of respondents. These are relatively low-growth, mid-sized businesses
Good appetite for Open Banking: 30 percent are ‘open for business’. These high-growth, sophisticated and larger businesses, typically in manufacturing, technology, media and telecoms (TMT) or financial services, are likely to adopt or pay for Open Banking
High street banks, followed by building societies, are most trusted by SMEs and best placed to deliver Open Banking
New entrants and starts-ups are least trusted, indicating a hard task ahead
Just one in seven SMEs is willing to give a third-party access to its data.
will pay to make and receive payments to/from suppliers and customers more easily and quickly24%
will pay or switch provider for a dashboard of all business finance accounts, loans, savings, assets, etc.25%
would switch providers for fast and easy payments22%
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