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Majority of SMEs frustrated with business banking
An overwhelming number of SMEs are currently fed up with the level of service they get from their business banking. New research from card issuing platform Margeta has revealed that 84% of business owners are frustrated with the performance of their bank.
Nearly a third (30%) also expressed dismay with the time it takes for financial institutions to make lending decisions and felt similarly frustrated about the inflexible credit offered by banks.
The National Federation of Self Employed & Small Businesses (FSB) has already issued a warning that up to 250,000 SMEs are at risk of folding over the next 12 months. The research confirms that more needs to be done to help businesses suffering from the economic downturn.
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Banks are therefore being encouraged to do more to remove unnecessary barriers and offer more help for the SME community. The survey found that almost four-in-five (78%) SMEs have become more reliant than ever on digital banking services in the wake of Covid-19.
Digital services
As a result, almost nine-in-ten (89%) are now calling on banks to offer improved digital services within the business banking marketplace. If the situation doesn't improve 67% of SMEs told the survey that they’ll consider moving to another business bank account provider.
Key improvements requested during the survey by SMEs included the ability to track income and expenditure in real-time from their business bank accounts (82%). Meanwhile, 80% wanted to be able to send, pay and track invoices directly from their business bank account (80%).
In addition, 77% had the desire to integrate their business banking with other systems including their accounting software. Those questioned felt it would help speed up decision-making on business loans.
“SMEs are craving digital banking experiences, but have previously been limited by what’s on offer. In the onset of the Covid-19 pandemic, digital channels became the only way for SMEs to manage finances, apply for loans and make payments – so they had to adapt, and they aren’t keen to go back to the old ways,” explains Ian Johnson, Managing Director Europe at Marqeta.
“At the same time, new and innovative fintechs, like Tide and Capital on Tap, have entered the scene offering a frictionless digital experience to SME customers. Challenger banks like Starling Bank, Revolut and Monzo have also launched business banking propositions which are driving up SMEs’ expectations around business banking, which may create a perfect storm.
If banks don’t act now to improve existing digital services, they risk losing a vital revenue stream as customers switch to other providers with better offerings.”
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Date
05 Feb 2021Sources
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Amazon CEO hails AWS but warns further price rises could come
Read MoreJeff Bezos stepping away from being the CEO of Amazon was a seismic change for the company – and its tradition of writing an annual letter to shareholders.
Andy Jassy, who previous led AWS to its incredible heights, has stepped up the plate and released his first letter, the 2021 Letter to Shareholders, clocking in at over 6,000 words and covering a huge array of topics.
"Over the past 25 years at Amazon, I’ve had the opportunity to write many narratives, emails, letters, and keynotes for employees, customers, and partners," says Jassy. "But, this is the first time I’ve had the honor of writing our annual shareholder letter as CEO of Amazon. Jeff set the bar high on these letters, and I will try to keep them worth reading."
AWS growth
Jassy covers three main topics in his letter: AWS, Amazon's consumer businesses and Prime, and labour issues.
According to Jassy, AWS is continuing its meteoric rise and remains the premier cloud services provider. Growth slowed slightly during the pandemic, dropping to a meagre 30% year-over-year, but Jassy says things have returned to 2019 levels.
The consumer business has gone from strength to strength, too, boosted by the pandemic forcing consumers to shop online. Jassy commends Amazon's workforce for adapting to the historic changes without missing a beat.
Unions!
Much of Jassy's letter is devoted to a huge topic for Amazon: labor.
Amazon workers in Staten Island recently voted to form the first labor union at the company, an historic change that could fundamentally reshape how the company interacts with its workforce.
It's no secret that Amazon works its workers hard – very hard. Over the years, there have been numerous stories about workplace injuries, delivery drivers having to pee in bottles, corporate employees crying at their desks, and more.
READ MOREWhile Jassy doesn't mention the word "union", a considerable amount of ink is spilled championing what he says are innovations in workplace management and employee relations, such as the $15 minimum wage.
"When I first started in my new role, I spent significant time in our fulfillment centers and with our safety team, and hoped there might be a silver bullet that could change the numbers quickly," Jassy says, referring to warehouse injury rates. "I didn’t find that."
Jassy's future
Jassy is only a few months into the job – and Jeff Bezos remains the Chairman of the Board – and so his first shareholder letter is an interesting document.
Towards the end, Jassy highlights many of the things he plans to do and future initiatives from Amazon, such as the Kuiper internet satellite network.
Amazon is almost too big to fail at this point, but the company does face significant headwinds from a range of areas: regulators, labour unions, Microsoft's relentless push with Azure, and the climate crisis.
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