UK Small Business Banking market report
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Providing the most comprehensive and up-to-date information and analysis of the Small Business Banking market, and the behaviours, preferences and habits of the consumer.
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What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
Covered in this report
There is no single definition of a small firm, mainly because of the wide diversity of businesses. However, the Department for Business, Energy & Industrial Strategy uses the following definitions:
- Microbusiness: 0-9 employees
- Small business: 10-49 employees (can include microbusinesses: 0-49 employees)
- Medium-sized business: 50-249 employees
- Large business: 250 employees or more.
UK Finance data defines a small business as having an annual debit turnover of up to £1 million/£2 million (note: different banks use different turnover criteria). For the purposes of the fieldwork conducted for this report, Mintel defines small businesses as those employing 100 people or fewer.
What you need to know
Small businesses are the life blood of the UK economy. According to the Department for Business, Energy and Industrial strategy, small businesses account for 99.5% of the total business population, while contributing 39% of total private sector turnover.
The value of the small business banking market has been rising for a number of years, particularly in terms of the number and value of small business current accounts. However, the current state of the market is one which is dominated by the main banking providers, despite the fact that there is little differentiation between them. Small business owners’ receptiveness towards Open Banking, which it is hoped will drive greater competition in the market, is lacking, largely due to concerns about data sharing.
This report covers the UK market for small business banking. This includes the size of the market as well as a five-year forecast of current and savings account balances. The Report also reviews the main drivers in the market, the composition of the market share, and profiling of the major small business banking providers. Mintel’s exclusive consumer research covers business bank account ownership and attitudes towards switching and borrowing, as well as small business owners’ outlook on both Open Banking and their future plans.
Expert analysis from a specialist in the field
Written by Douglas Kitchen, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Switching is rare in the small business current account market. However, business owners’ attitudes towards challengers suggest there are opportunities for smaller and newer providers to grow their share of the market. For example, 57% of small business owners would be willing to use an online-only or app-based provider. If such providers can effectively market their products and offer a degree of personalisation, there is a chance that more business owners will look to switch banking providers.
Financial Services Analyst
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This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
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* This is a sample representation of the report layout and does not reflect the research included in this report.
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