SME FinTech Trends in 2023

By Team bluQube

With more than 5.5 million registered small businesses employing nearly half of the UK’s total workforce, it is undeniable that this sector has become a pillar of the economy.


The small and medium-sized enterprise (SME) sector is a vital component of the UK economy, employing nearly half of the workforce. However, SMEs face challenges in the form of a cost-of-living crisis and rising interest rates. Traditional banks and credit unions have become more cautious about lending to SMEs, making it harder for them to secure financing.

In this environment, financial technology (FinTech) emerges as a lifeline for SMEs, offering flexible financing options and much more. Let's explore some of the FinTech trends in 2023 that can empower SMEs to access capital, enhance customer relationships, streamline business processes, and sustain growth.

  1. Embedded Finance: In recent years, digital payment products have gained traction, enabling SMEs to seamlessly integrate financial services into their offerings. Embedded finance provides access to services like embedded payments, lending, and insurance, allowing SMEs to attract more customers and conduct more transactions. A prime example is the buy now, pay later (BNPL) scheme, which benefits consumers with limited access to credit while providing retailers with a third-party financing option.
  2. Diverse Payment Solutions: The digitization of payment services necessitates SMEs to invest in diverse and updated payment solutions. Whether business is conducted online or in physical stores, SMEs must balance the convenience of card and contactless transactions with the security of customer banking information. Payment solutions range from online payment gateways that reduce abandoned shopping carts to card machines that facilitate payments at registers or on the move. Integration of various payment channels caters to a wider customer base and reduces operational costs.
  3. Blockchain Technology: While often associated with large corporations, blockchain technology offers promising opportunities for SMEs. Its distributed ledger and smart contract capabilities enhance trust and transparency for capital providers and lenders. Blockchain streamlines authentication and payment tracking, replacing manual paperwork with real-time, digitized processes. SMEs engaged in cross-border and multi-currency transactions benefit from reduced delays and errors.
  4. Automation and Analytics: Automation plays a crucial role in modern SME finance. Software solutions, including cloud accounting software, automate tasks such as financial tracking and cash flow management. Cloud accounting software, in particular, offers an optical character recognition (OCR) feature that extracts structured, real-time data from receipts and invoices, reducing errors associated with manual entry. These tools enable SMEs to analyse trends, make informed financial decisions, and allocate resources more efficiently.

In a landscape where traditional financing options are tightening, SMEs can leverage these FinTech trends to navigate challenges and drive growth. Whether it's embracing embedded finance, adopting diverse payment solutions, harnessing blockchain technology, or automating financial processes, SMEs have the tools at their disposal to thrive in 2023's dynamic business environment.


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Article written by Jolene Simmons for

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