UK Card Issuers and the SME Market in 2018: Key risks and opportunities

1. Increase revenue from existing SME customers

Existing SME customers are multi-sourcing in part because their banks aren't offering the features that they need, and in part because where features are offered, they are inconvenient to use.

But banks can replicate the slick, mobile-first interfaces and richer functionality of newer FinTech services - either by choosing to develop their own bespoke services, or by using off-the-shelf products.

The latter, like Vipera's SME Pay, offers proven technology, a modern and fully customisable user interface, and rapid implementation. By partnering with an off-the-shelf product provider, banks can get their startup-style services to market significantly more quickly.

And once their services are available to their customers, they are well positioned not only to stem the flow of multi sourcing, but to increase revenue from customers who may not have considered taking additional services from them.

2. Generate new revenue from customer multi-sourcing

Few bank accounts today will work smoothly with a FinTech service such as Paypal Working Capital - the account and the service must be operated independently of one another, with money simply transferred between them.

But banks who embrace Open Banking and 'fintegrate' with specialist services stand to benefit from their multi-sourcing customers. Without needing to build and maintain their own competing services, they can strike deals with the most successful FinTechs, integrating directly the services their customers find most useful - and help increase customer loyalty while boosting the bottom line.

'Fintegration' tools which allow bank systems to smoothly, securely integrate with FinTech services are the key - Vipera's Motif offers an off-the-shelf solution with the support of a highly experienced implementation team.