In 10 years, self-employment is expected to outpace salaried work, meaning that most individuals will behave like business owners. In the UK alone, sole proprietorships and micro-enterprises make up 96% of businesses. European banks could open up billions in new revenue streams by 2028 if they reimagine their roles from financial services providers to business partners.
Fuelled by regulatory mandates, EU banks will have to compete with a host of challengers all vying for the loyalty of this lucrative segment. With switching costs at an all-time low, micro-enterprises are willing to shop around for financial products and services that meet their functional needs, increasingly fragmenting the bank-customer relationship. In the absence of competitive costs, incumbents will have to bridge the gap with value-added tools and services that help customers’ run their businesses better.
In this presentation, you’ll learn about:
- The forces driving the micro-enterprise economy
- The market size and opportunity of servicing micro-enterprises
- Most active SME investors in the UK and EU
- The segment’s financial pain points and needs
- How a beyond-transactional mentality translates to customer retention
- NatWest’s strategy for delivering business value to their customers