SMEs are the backbone of the UK economy but their financial needs are shifting. Against a backdrop of economic uncertainty and rapid digital innovation, Vested hosted a breakfast roundtable at The Ivy Tower Bridge to explore what these changes mean for banks, fintechs and communicators alike. 

We were joined by Shiona Davies, Director at BVA BDRC and author of the SME Finance Monitor, the largest independent study focused on access to finance for SMEs since its inception in 2011. Shiona’s insights set the scene on how SMEs are navigating finance today.

While the market is full of innovation, many SME behaviours remain stable. Application success rates are steady, but caution persists – especially among older businesses that favour slower growth over borrowing. Yet ambition is alive in pockets, particularly among younger, AI-enabled startups. The group explored what’s driving the divide and what it means for growth.

Human First: Marketing That Connects 

SME owners make “business decisions,” but their motivations are fundamentally human. The discussion highlighted the imperative for marketing to reach SMEs through the same channels where they consume media as individuals, acknowledging their inherent human motivations.

The group agreed that SMEs can be “burned” by rejection when applying for finance, leading to discouragement. There’s a clear need to provide more data and constructive feedback to help them amend applications and reapply.

Trust, Consistency, and Consumer-Style Approaches

In a market crowded with providers, trust is the currency that matters most. Small business owners are also consumers, suggesting a strategic need to adopt a more relatable, consumer-centric marketing approach in business banking, moving beyond traditional, often staid, B2B tonality. Peer referrals and community-building emerged as powerful tools, especially for cohorts underrepresented in traditional finance spaces.

Collaboration, Clarity, and the Advisory Role

The discussion underscored the need for a deeper understanding of why some SMEs might lack an appetite for finance or be apprehensive about new providers and technologies. 

We explored how communications and marketing can strategically influence SME mindset, overcome these underlying apprehensions, and proactively foster a greater appetite for growth-enabling financial solutions. 

Key strategies included:

• Rebranding SME Finance: Moving away from seeing finance as a “burden” and towards viewing it as an “opportunity.”
• Clarifying Finance: Making complex financial concepts digestible and accessible.
• Bridging the Education Gap: Acknowledging the education gap around finance and emphasising the importance of peer referrals and trusted advisors.
• Addressing Perception of Debt & Risk: Tackling the psychological barriers and the perception of debt as an “external body controlling your life.” This requires a fundamental shift in mindset.
• Advisory Role: Positioning financial providers more as “advisors” or “guides” rather than just lenders.

The role of comms in shaping the future

As SME financial behaviour continues to evolve, our job as communicators is to stay ahead of sentiment. The behavioural and psychological barriers to borrowing are real and tackling them requires more than just good products. It requires smart storytelling, meaningful education and a deep understanding of what SMEs truly need to grow.

Want to see how Vested can help you connect with SME audiences more effectively? Let’s talk.