For years, high street banks have been pulling away from SMEs, replacing relationship managers with automated services and offering little in the way of tailored financial support.

Meanwhile, large corporations continue to receive dedicated banking advice, access to competitive interest rates, and bespoke lending solutions and SMEs, despite making up a third of the UK economy, are left to navigate the financial landscape alone.

As an accountant working closely with business owners, it is clear how much this shift has impacted SMEs. Many are struggling to access funding, make the most of their cash reserves, or find banking solutions that genuinely work for them.

In the absence of traditional banking relationships, accountants have naturally stepped in to fill the gap by helping businesses secure finance, optimise their banking strategies, and plan for sustainable growth.

Expanding role of accountants in SME finance

While traditional accounting responsibilities like tax and compliance remain essential, the scope of an accountant’s work has grown significantly. Increasingly, companies need to navigate a number of business areas, including banking decisions - an area where many SMEs now feel under-served.

With high street banks becoming less SME-friendly, a critical part of the accountant’s role is to actively review the market and help clients explore better banking options, including those offered by challenger and specialist banks.

This isn’t just about switching accounts, it’s about asking the right questions. Are their savings working hard enough? Could they be earning cashback on card spend and regular transactions? Could they benefit from refinancing? Are slow customer service and outdated tech impacting day-to-day operations?

These conversations have become a regular part of client reviews because the answers often highlight real opportunities to improve cash flow, access funding, or reduce risk.

Accountants also play a key role in helping clients stay organised and prepared. Whether it’s ensuring know your customer (KYC) documentation is up to date, supporting multi-bank strategies to reduce operational risk, or simply having clean, current financials ready to present to lenders.

Challenger banks are stepping up

One of the biggest shifts in recent years is the emergence of challenger banks filling the void left by high street lenders. Unlike traditional banks, which have deprioritised SMEs, challenger banks like Allica Bank are reintroducing relationship banking, giving SMEs direct access to dedicated banking experts who understand their needs.

Allica Bank recently surveyed over 70 accountancy firms, and 42% of accountants said they have banking-related discussions with clients monthly, and 36% reported having them daily. This is something reflected in my day to day with clients, and despite how frequent and important these conversations are, only 3% of accountants surveyed believe SMEs are getting the banking support they need.

This highlights just how crucial it is for SMEs to have strong financial support, whether it’s through their accountant, their bank, or ideally, both. To truly unlock the potential of SMEs, strong collaboration between accountants and banks is essential.

When accountancy firms work with banks that understand the realities of SME life, they can help clients access financial products that support rather than hinder their growth. Better lending terms, competitive interest on savings, and responsive service are not just nice to have, but can determine whether a business stagnates or scales.

For example, one of my clients switched to Allica’s bank account and earned over £5,000 in interest in just one month, a return they would never have seen with their previous high street bank.

These are the kinds of financial wins that can make a real difference to cash flow and business investment. Having access to financial products that actually serve SMEs’ needs is essential, and with high street banks stepping back, challenger banks are proving that a personalised approach to business banking is still possible.

At a time when many SMEs feel increasingly overlooked by the banking system, it’s the banks and accountants who are advocating on their behalf, identifying better alternatives, and guiding them toward financial decisions that serve their long-term goals.

Future of SME banking

SMEs are the backbone of the UK economy, but without access to tailored banking support, many struggle to reach their full potential. Accountants have already stepped up to bridge the gap left by traditional banks, but it cannot be done in isolation. The next step is to strengthen collaborations with financial institutions that truly understand the needs of SMEs.

By working with forward-thinking banks that recognise the importance of relationship-driven banking, SMEs will not be left behind. Whether it’s securing better funding, improving cash flow, or maximising financial returns, the right financial partnerships can be a game-changer for small businesses.

It is time to move away from the one-size-fits-all approach of high street banks. With accountants and challenger banks working together, we can redefine SME banking and ensure businesses not only survive but thrive.

About the author

Dale Pollitt is a director at Ryans Chartered Accountants in Bolton

Croner-i Navigate provides further guidance, commentary and tools on accounting for SMEs