The Fragmentation Problem
Mark Hartley, CEO and founder of BankiFi, warns that traditional banks are losing their grip on small and medium-sized enterprises (SMEs). The issue is not a lack of tools, but a fragmented financial architecture. Banks currently act as simple repositories, while specialized applications handle the vital daily operations of a business.
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Consolidating the SME Experience
Data from a 2025 JumpCloud study supports this vision. It reveals that 51 percent of UK SMEs use between five and ten different applications to manage their operations. Furthermore, 83 percent of business owners prefer a centralized hub for these functions. Hartley believes the bank is the natural choice for this consolidation, as customers already trust these institutions with their money and data.
Modern businesses no longer view balance checks and payments as sufficient. They demand integrated workflows covering invoicing, accounting, and tax management. The shift is cultural rather than technological. Business owners expect the same seamless, connected experiences they enjoy as consumers, rendering fragmented, legacy systems obsolete.
The Competitive Threat
Neobanks identified this trend early, integrating comprehensive services from their inception. This has raised the bar for the entire industry. Banks that fail to move beyond basic account management risk losing market share, deposits, and long-term profitability.
Hartley cites internal BankiFi research indicating that of the 800,000 new business current accounts opened in 2025, less than 40 percent were created at mainstream banks. To compete, banks must embrace partnerships. By focusing on their core strengths—trust, security, and payments—while leveraging specialist providers for workflow tools, banks can innovate faster without the massive costs of internal development.
Practical Integration and Cultural Change
The partnership between BankiFi and Lloyds Banking Group serves as a primary example. This collaboration provides SMEs with integrated invoicing, tax visibility, and cash flow management within the bank's digital channels. It signals that even the largest institutions now recognize the value of external expertise.
Real differentiation comes from simplifying daily tasks rather than simply adding features. While banks often cite technical or regulatory hurdles, Hartley insists the primary obstacle is cultural. Success requires a shift in mindset: moving away from building everything internally toward an open, partnership-based model. Technology providers must meet rigorous banking standards for security and resilience to make this transition possible.
