A staggering 70% of SMEs feel that their banks prioritise larger companies over them, according to a survey conducted by fintech platform HedgeFlows and independent polling agency Censuswide.
This alarming finding brings to light the perceived discrimination against smaller businesses in the banking sector.
Furthermore, the survey discovered that a significant 72% of SME owners believe that their banks offer only sparse support concerning international payments.
This lack of assistance leaves a considerable void, underscoring the necessity for additional support to boost SMEs’ confidence and capabilities to expand overseas.
Banks Neglecting SMEs
The feeling of neglect runs deep among the surveyed SMEs, with 73% claiming that they find it challenging to secure a meeting with their bank or financial manager.
This difficulty adds to the delays in implementing their business plans, further exacerbating the perception of being sidelined by their financial institutions.
High Trading Costs and International Expansion
High trading costs present a significant barrier for SMEs aspiring for international expansion.
A remarkable 72% of respondents felt that bank transfer fees abroad are exorbitant and called for a reduction for smaller companies.
Although 69% of the surveyed SMEs believe that international expansion could bring substantial benefits to their business, 65% admit a lack of financial expertise to undertake such a move.
Furthermore, amidst rising inflation and economic uncertainty, 78% concede that their company has limited cash reserves, making the prospect of overseas expansion more daunting.
A Call for Change: Equipping SMEs for Growth
In the words of Neh Thaker, co-founder of HedgeFlows, “SMEs are the beating heart of the UK economy, creating jobs and driving crucial growth in uncertain times.”
He stresses the absurdity that these essential drivers of the economy feel left out by their banks.
He calls for the need to “equip SMEs with a level playing field to expand internationally,” giving them access to services for managing overseas transactions, currency conversions, and cash flows, privileges enjoyed by larger enterprises.
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