There are 5.5 million SMEs in the UK, but the vast majority are micro and small businesses. Their banking needs are relatively simple and well-served by both challenger and traditional banks. However, established businesses, those with 5-250 employees, face unique challenges that many traditional banks fail to support effectively.

Over the past 15 years, business banking for this segment has changed significantly due to the declining presence of high-street banks, local branch closures and the removal of dedicated relationship managers. Established businesses now experience impersonal and inconvenient service. This has created a knowledge gap, so SMEs no longer understand how banks make lending decisions, the due diligence they do on customers, and what financial products are available. In response, many business owners turn to their accountants for guidance in navigating this evolving financial landscape.

Accountants as key advisors

For accountants, these medium-sized businesses are often their most valued clients. Accountants play a critical role in financial planning, forecasting and decision-making, helping businesses prepare for discussions with banks and investors. Their ability to support clients through cashflow challenges, payroll concerns and economic uncertainty in 2025 will be crucial to the overall health of the UK economy.

To better understand the challenges businesses face, Allica Bank surveyed over 70 accountancy firms across the UK. 89% of respondents believe the Autumn budget policies will make running a business more difficult. When asked what government measures could ease these difficulties, 68% suggested streamlining HMRC communication, while 40% called for a reduction in regulatory burdens.

When it comes to business advice, 42% of accountants said they have these discussions with clients monthly, while 36% reported having them daily. The most common banking concerns raised include working capital (55%), current accounts (52%) and long-term borrowing (39%). Despite this, only 3% of accountants believe SMEs are getting the banking support they need.

Relationship banking to unlock opportunities

One area where accountants can provide significant value is by helping clients review their current banking. Many established SMEs receive lower savings rates compared to larger corporate clients, or aren’t getting any return on their savings at all. Our Great British Savings Squeeze research found that businesses with an average balance of £75,000 could be missing out on up to £2,268 per year in interest. On a national scale, this amounts to nearly £9 billion in lost earnings for SMEs collectively.

For a more established business with, say, £1 million of cash on deposit, the amount of lost interest can really start to add up. That’s money that could help offset rising employment costs, be invested in a new piece of machinery, or fund growth.

Accountants can further help their clients improve their day-to-day cash management by opting for earning cashback on spending and no monthly fee banking options. Despite the importance of banking conversations, our poll with ICAEW found that only 8% of accountants proactively discuss banking with clients. Meanwhile, 46% said they did not have these discussions at all due to a lack of confidence.

This highlights the opportunity for accountants to deepen client relationships by offering guidance on banking decisions. It also shows that banks have a role to play in empowering accountants with better data, information and insights. Equipping them with the knowledge and tools they need to have these conversations.

A role of banks in supporting accountants

The traditional model of relationship banking, where businesses had a dedicated manager to provide tailored support, has largely disappeared from high-street banks. Yet, the demand for this kind of help remains strong.

At Allica, we have successfully filled this gap by offering a modern version of relationship banking, combining digital convenience and access to products that add value for business owners. This approach provides SMEs with market insights, personalised support, and faster decision-making in areas like lending and onboarding.

Banks can empower and support accountants by providing client data and insights, helping them identify businesses that could benefit from improved financial solutions. Our accountancy partnership team at Allica Bank works closely with accountants, we help them feel informed and equipped when discussing banking to unlock opportunities to deepen their advisory discussions with clients. Since launching this team in April 2024, we have seen the beneficial impact this collaborative approach has for SMEs, so we are now doubling the size of our team.

‍How accountants can support clients with banking requirements

Don’t assume that all banks are the same. While high-street banks have become less SME-friendly, the rise of challenger and specialist banks has created new opportunities. Accountants should actively review these options to ensure clients get the best possible banking services tailored to their industry, size and growth ambitions. Competitive interest rates, cashback incentives and reduced fees can all make a tangible difference to a business’s bottom line.

Consistently engaging clients in banking discussions is key. Questions about their banking should be a regular part of monthly or quarterly reviews. Are they frustrated by long customer service wait times? Could their cash reserves be earning more interest? Are they considering refinancing an asset to fund expansion?

By proactively addressing these topics, accountants can better support clients in achieving financial stability and growth.

Beyond optimising banking setups, accountants can play a crucial role in risk management. In recent years, fraud and account closures have made headlines, leaving many businesses vulnerable. Encouraging clients to adopt a multi-banked strategy can provide an additional layer of security against operational disruptions.

Additionally, ensuring that all ‘Know Your Customer’ (KYC) documentation is up to date can streamline anti-money laundering and due diligence checks, making banking and lending processes smoother. By keeping financial records organised, accountants can help clients avoid disruptions and access funding more efficiently when needed.

There are numerous ways accountants can go beyond tax and compliance to deliver greater value to their clients. By staying informed on the banking landscape, accountants can proactively help their clients access benefits and unlock their full growth potential in 2025 and beyond. Their established business clients are a critical pillar of the UK economy and deserve to be recognised and supported by the banking sector, not overlooked by them.