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1. Small Business
Banking
The challenge of serving small businesses
WHITEPAPER

2. PAGE 2INNOVATION LAB
CONTENT
1. INTRODUCTION
1.1 Why small
businesses?
1.2 Methodology
2. CONTEXT
2.1 Small businesses
- who are they?
2.2 Relation to
banking
2.3 Mismatching
2.4 Banking
lifecycle
2.5 Challengers
serving small
businesses
3. INSIGHTS
3.1 Four identified
needs
3.2 Support
3.3 Time
3.4 Funding
3.5 Tailoring
5. THE WAY FORWARD
5.1 Concluding remarks
5.2 Goals and
strategies
5.3 Further reading
4. EXPLORING
OPPORTUNITIES
4.1 Design thinking
4.2 Concept jam
4.3 Concepts

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Traditionally, most banks have not prioritised small businesses
as a customer segment because large businesses have been
more profitable to serve. Nevertheless, in the Nordics small
businesses constitute to over 90 percent of companies,
employ one in four employees, and account for 29 percent
of the value added to the region. Banks seek business models
to increase their engagement in this segment, but they
struggle to develop products and services that create value
for both small businesses and banks.
The needs of small businesses vary significantly. Some
businesses want bank services that are simple, fast and
cheap. Others value a close, personal contact with the bank.
Hence, they can be complex to serve.
Despite their differences, this whitepaper has identified four
distinct needs which banks should address. These are the
need for:
 support
 time-saving solutions
 funding
 tailored services
This whitepaper will elaborate on small businesses’ challenges
and needs, discuss how they are served by banks and other
service providers and explore the opportunities that may be
pursued. The insight is drawn from interviews, observations,
service safaris, workshops, and relevant literature.
The Small Business Banking whitepaper is part of the Bank
2020 research program in EVRY Innovation Lab.
Abstract

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1
1.1 Why small
businesses?
1.2 Methodology
INTRODUCTION

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Small businesses* are highly productive. As a segment,
they produce 29 percent value added to the Nordic
economy1. 93 percent of all Nordic businesses are small,
and 25 percent of Nordic employees work in a small
business. Still, small businesses find themselves underserved
by banks with regards to their needs, and many report a
distanced relationship with their bank.
Banks have traditionally identified small businesses as being
less profitable to serve compared to larger businesses due
to the traditional banking business model. Hence, the small
businesses have not been a prioritised customer segment.
The down prioritising of small businesses open up for other
players, such as financial technology (FinTech) startups.
FinTechs are in many cases providing solutions that
specifically target small businesses through the use of new
products, services and business models.
Therefore, several banks realise that it will be valuable to
rethink the service offerings for small businesses to gain the
full potential of this segment.
1. INTRODUCTION
1: The European Commission report, Enterprise and Industry, 2014 SBA Fact
Sheet (Denmark, Sweden, Norway and Finland).
Small businesses Medium and large businesses
1.1 Why small businesses?
No. of firms Employment Value added**
*EU defines small businesses as ‘micro businesses’.
From conducting interviews with these ’micro
businesses’, banks, and other stakeholders, it was
clear that neither of these actors use the phrase
‘micro business’ when talking about the business.
Hence, we opted to continue using the name
‘small business’.
**Investopedia defines value added as the
difference between the gross revenue for a
segment and the sum of the labour and services
purchased to produce the goods that generated
the revenue.

7. PAGE 7 INNOVATION LAB
Number of interviews
16 small businesses
(owners and employees)
Age interviewees
26 - 60 years
Company Age
1 - 35 years
Length of interviews
35 - 120 min.
Service Safaris2
6
Data collection conducted in
Denmark and Norway
1.2 Methodology
2: LiveWork: A service safari is an experiential field trip for teams to
understand how services feel from the outside – as a customer.
Primary data sources
 Interviews
 Observations
 Service Safaris
 Workshops
Secondary data sources
 Reports on small and medium-sized enterprises
(SME), banking services and market trends
 Online case studies, news articles and blogs from
the banking industry
Advisory Board Norway - 3 meetings
(representatives from SR-Bank, Landkreditt Bank,
and Handelsbanken amongstst others)
Advisory Board Denmark- 3 meetings
(representatives from CFIR, BEC, Nordea, and Lendino
amongstst others)

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2
2.1 Small businesses -
who are they?
2.2 Relation to
banking
2.3 Mismatching 2.4 Banking
lifecycle
2.5 Challengers
serving small
businesses
CONTEXT

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In this whitepaper, small businesses are defined as businesses with a maximum of ten employees in total. They have
been in business for more than one year, and they often do not have a dedicated person to take care of financial and
accounting tasks.
2. CONTEXT
2.1 Small businesses - who are they?
BEHAVIOUR
Financial tasks are often added to the workload of someone in the business.
These tasks are therefore commonly undertaken by people without the
motivation nor in-depth knowledge about business economics. Some small
businesses manage their financial tasks themselves, but it is common to get
help from an external accountant.
MOTIVATION
Small businesses face many challenges. Nevertheless, the founders often have
a strong motivation for continuing the business. In challenging times, they
remind themselves about why they started the business: being their own boss,
the freedom this entails, doing what they love and contributing to society.
PLANS
Many small businesses do not have clear business goals. What they want is
enough income to have a thriving business, and to renew the company in
order to stay competitive and relevant. Others have plans of growing quickly
and taking a significant market share.
SMALL
1 - 10 people
STABLE
1+ year in business
NO CFO
dedicated to financial
and accounting tasks

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Our research shows that most small businesses have a strained relationship with banking and
accounting.
2.2 Relation to banking
DO ACCOUNTING OUTSIDE WORKING HOURS
Small businesses often struggle to find time to take care of their day-to-day banking activities.
Therefore, they often end up doing accounting in the evenings or during weekends.
LEARNED IT THE HARD WAY
Owners of established, small businesses have normally learned most of what they need to know
about banking and accounting through the years. However, this process has often been time-
consuming and frustrating for them.
RELY ON HELP FROM EXTERNAL ACCOUNTANT
Small businesses typically have a close relationship with their external accountant. They often
prefer asking him or her for advice instead of contacting the bank.
BANKING = BORING + TIME CONSUMING
Small businesses often find financial reporting and banking activities boring. They perceive it as
being too time-consuming, complex, and repetitive, but accept it as a necessary hassle that is
part of being self-employed.
DISCONNECTED FROM THE BANK
A common experience amongst small businesses, is that the bank is not there for them, nor
understands their needs. This leads to the small businesses feeling distanced from their bank
and the provided services.

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Banks’ and small businesses’ views on each other do not
correspond.
SMALL BUSINESSES’ PERCEPTION OF BANKS
A common perception amongst owners of small
businesses is that banking is unengaging and not an
important part of their daily life.
“It’s back-end. Something I need,
not something I want.”
- Self-employed in creative journalism
2. CONTEXT
2.3 Mismatching
Many small businesses feel powerless when it comes to
the services given from banks, unlike providers of other
services.
“I am not a customer. The bank is like a
daddy that I have to ask for permission:
‘Can I please…?’ - It’s a very hostile
relationship.”
- Owner of webshop
Many small businesses do not trust their banks and their
advisors to give the best suitable advice for them.
Instead, they experience the advisor as being a sales
representative.
“They serve their own needs, not mine.”
- Owner of publishing business

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BANKS’ PERCEPTION OF SMALL BUSINESSES
Banks have traditionally perceived large organisations
as more important and valuable to serve than small
businesses, possibly due to the banks’ business model.
“Small businesses are often picky on
price and in need for being held by the
hand at all times.”
- Employee in bank
An assumption within some banks, is that a small
business is just a miniature version of a large
organisation.
“We have based the services for small
business on solutions for businesses in
general, but we have made them less
complex.”
- Employee in bank
A common myth is that funding is the most important
need for small businesses and that the majority are
interested in growing in size.
“Many are in a need for a loan, but
we cannot help everyone.”
- Employee in bank

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Small businesses are often sticking to their bank, but nor out of loyalty and satisfaction with service offerings.
2. CONTEXT
2.4 Banking lifecycle
FINDING A BANK
Finding a bank for a small business is rarely based on thorough research on market offers and
available services, due to a lack of time and interest. Instead, our research shows that it often
relies on what banks the owner of the business have prior knowledge about. Prior knowledge
can be based on what private bank the owner of the business is already using, or what advice
their peers have to give.
PICKING A BANK
The most important factors for picking a bank are simplicity, digital functionalities,
convenience, accessibility, and support. The decision for picking one bank over another is also
often based on coincidences or small differences, but rarely on prices.

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KEEPING A BANK
Our research shows that keeping a bank not necessarily means that a small business is a
satisfied customer. However, the perceived friction and expected paperwork when
leaving a bank is often too much for small businesses to change their bank.
LEAVING A BANK
When a small business chooses to leave a bank, it is often caused by frustration
regarding a service or a feeling of being misunderstood. Such bad experiences are not
easily forgotten, and a good impression of the bank is therefore hard to restore.

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2. CONTEXT
It has traditionally been difficult for a small business to find financial services outside of the banks. However, this is
starting to change.
Financial technology companies (FinTechs) among
others, are challenging the banks by serving the
customers in new ways. Fintechs often develop a single-
purpose solution, in order to focus their efforts and
create the best user experience for the customers.
Many new entrants have recognised the gap between
the banks’ service offerings and small businesses’ needs,
and are targeting this segment specifically.
A number of platforms for helping businesses grow have
emerged in recent years. Three types are debt capital,
equity capital, and reward based capital solutions.
Debt funding platforms such as Lendino and Funding
Circle provide small businesses with loans given by peers
and professional investors. Such marketplaces meet the
demand for easier and more flexible lending solutions.
Equity funding platforms enable small businesses to raise
capital from investors who believe in the business’
product or cause. An example is the crowdfunding
portal FundedByMe, which connect entrepreneurs and
investors.
2.5 Challengers serving small businesses

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Reward based funding is another service offered
through FundedByMe. Other examples of reward based
capital solutions are Indiegogo and Booomerang. In
these platforms, individuals donate money to businesses,
and receive products or other rewards in return.
FinTechs are also offering easy to use payment services.
iZettle is for example targeting the smallest businesses,
with an app and card reader that allow individuals to
accept card payments on their smartphone or tablet.
iZettle also provide small businesses with simple tools for
accounting and sales reports.
The everyday needs of small businesses are addressed
by a variety of new entrants. Holvi, for example, offers
an online banking service aimed at small businesses,
entrepreneurs, freelancers and sole traders. The idea is
to create a simple, but powerful platform, where the
users are able to share their accounts with their
collaborators and maintain a complete overview of the
finances.

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3
3.1 Four identified
needs
3.2 Support 3.3 Time 3.4 Funding
NEEDS
3.5 Tailoring

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Small businesses face a multitude of various challenges. Still, we have identified some distinct needs through our
research that can be fulfilled by banks.
3.1 Four identified needs
SUPPORT
Due to limited resources and lack of in-depth knowledge about banking and
accounting, many small business owners need extra guidance. 11 out of 16
businesses amongstst our interviewees expressed that they regularly sought
help from their accountant, friends and family, or Google. As a comparison,
larger businesses also need support, but in a different way and often take the
support for granted. On the other hand, our research shows that small
businesses are more likely to highly value the help they are given.
TIME
Time is a scarce resource for small businesses. 11 out of 16 of our interviewees
reported to having tight schedules, working long hours and having little
tolerance for time-consuming operations. They do not have extra time to spare
on administrative tasks like day-to-day banking, which do not directly help the
company grow or earn money. An outcome of this is that many do not
prioritise spending time on exploring which services the bank offer, and are
therefore unaware of how the bank may support them.
3. NEEDS

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FUNDING
The request for bank funding amongst small businesses is relatively low. 10 out
of 16 in our study had not applied for any financial support from their banks.
The majority of small business owners want to manage themselves and borrow
from their private economy when necessary. Others do not have the
knowledge about how the bank can help financially and do not prioritise
looking into it. On the other hand, for the few small businesses in a pressing
need for external funding, it can be a question of life or death for the business.
TAILORING
As for any other customer segment, it is important for small businesses to
receive products and services that meet their specific needs. However, banks’
service offerings are in many cases not relevant for small businesses. There are
two main reasons for this: 1) the large variation of needs makes it challenging
to serve small businesses, and 2) small businesses have traditionally not been
prioritised by banks, as large businesses have been viewed as more profitable
to serve.

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3. NEEDS
3.2 Support
PARTNERSHIP
Owners of small businesses build strong ties to different
partners whom they can help and receive help from.
Examples of such partners may be their accountant, other
small businesses or an industry association. Small businesses
need support along the way, but the bank is seldom
regarded as a true partner for them. 4 out of 16 of our
interviewees regarded their bank as a partner. This
relationship was a result of having developed a bond with a
specific person in their bank. Two had changed banks when
their contact person changed jobs.
Other small businesses wanted their bank to become a
partner, but experienced to be rejected. Such incidents are
damaging to the customer relationship.
KNOWLEDGE
Most entrepreneurs do not have a business education or any
experience with accounting. Their expertise lies in their
profession: building houses, treating patients or designing
websites. Especially in the starting phase, the small businesses
need guidance. However, help is not always available.
Successful businesses have had to shut down due to lack of
financial control and overview. Others have managed to stay
in business, in spite of tough years. In our research, we found
examples of small businesses losing significant amounts due to
a not optimal registration of their businesses. If the bank had
given more relevant information at the time, many of these
business would be more financially stable.
“In an ideal world I would have a contact person in the bank who is never replaced.
Just like a mom who takes care of me, who can say: ‘Now you have forgotten to
submit the report.’ It's hard to keep track of everything myself.”
- Owner of chiropractic clinic

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FRICTIONLESS COMMUNICATION
When contacting the bank, the small businesses want
quick replies and quick results on requests. However, our
interviewees have experienced waiting up to 2,5
months for the bank to answer an e-mail. Phone calls or
web chats are generally not preferred, due to
perceived risk of being misunderstood or not replied to
altogether.
The small businesses also feel they are wasting time filling
out forms and repeatedly giving information to the
bank, for example when changing banks, buying
insurance or applying for loans. The information is
collected based on the bank’s needs, without giving
sufficient explanation to the customer of why it is
needed. Time-consuming communication and
paperwork create frustration that may lead to the
businesses leaving the bank.
TIME-SAVING SOLUTIONS
Various existing tools for small businesses are time-
saving, such as softwares that transform receipts to a
digital format. Visma, Fiken, Tripletex and E-conomic are
amongst the accounting solutions that can be
integrated with the online bank. Nevertheless, small
businesses experience that the systems do not speak
well together. As an example, one has to go back and
forth between the online bank and accounting
software when paying an invoice. Banking and
accounting are typically viewed as two sides of the
same coin. When the systems do not correspond, the
banking user experience is negatively affected.
3.3 Time
“I bought a warranty for the houses I build, but when the bank made me
approve the agreement every year, I found another provider.”
- Carpenter

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3. NEEDS
3.4 Funding
ALTERNATIVES TO SELF-FUNDING
Most of the small businesses in our study financed the
business themselves, either by borrowing from other
internal accounts or from their private economy. The
desire to manage without a bank loan is high. Still,
several interviewees admit that self-funding has affected
the family economy. Others report that they believe the
business would have been more successful with external
funding. Amongst small businesses, there is both a lack of
information about the financing possibilities and lack of
knowledge about how the funds can help the business.
EFFICIENT LOAN PROCESSES
Applying for a loan and credit line can be frustrating for
small businesses. Our interviewees viewed the processes
as cumbersome and slow, with paperwork, meetings in
the branch and long waiting time. A common desire is
to manage the business as long as possible without
financial help from the bank. When a bank loan
ultimately proves to be necessary, the business owners
are eager to get it done as quickly as possible. Their
impatience does not match the banks’ thoroughness,
and this creates frustration.
“I wanted to grow the business organi-
cally. It was a stupid thing for me to
do. I could have had a business with many
employees today, but now it’s just me.”
- Car part dealer
“As a business owner, you always need the
money yesterday, when you find out that
you need a loan. You cannot wait three
weeks for the loan to be approved.”
- Owner of webshop

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PERSONALISED SERVICES
In the smallest businesses, the personal online bank is often
preferred over the business solution. For some, it takes time to
navigate within the business online bank when they are used
to the personal one. Various features that small businesses will
not use, merely create confusion.
The language that the banks use is another important factor.
How letters, e-mails and messages are written affects the
small businesses impression of whether the services are
tailored for them or not. When the language is too difficult,
the bank risks that the receiver ignores or misunderstands the
content. Several of our interviewees had had to ask their
accountant to translate the messages from the bank. This
creates a distance between the customer and the bank.
BEING UNDERSTOOD
A recurring issue discussed amongst our interviewees, was the
experience of being presented several irrelevant services and
at the same time not receiving the needed support. This
mismatch led to a feeling that the bank did not value,
prioritise, nor understand their business. Several of the small
businesses perceived that they were categorised and put in
a box that they did not find familiar. As long as the customer
feels unimportant for the bank, it is difficult to create loyalty.
3.5 Tailoring
“Just be a human, is that so hard?”
- Self-employed in accounting
“The bank doesn't understand what it means
to be a small business. It shines through the
way they approach us”
- Owner of a publishing business

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4
4.1 Design thinking 4.2 Concept jam
EXPLORING OPPORTUNITIES
4.3 Concepts

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4.1 Design thinking
The previous chapters investigated the context, needs,
and desires of small businesses. It is important to
understand these factors and empathise with the people
we are designing solutions for, in order to create
meaningful, relevant and valuable user experiences.
Small businesses are best in doing what they love to do
and need support in doing their banking, accounting
and business administration efficiently. Therefore, this
following chapter aims to explore different ways to help
and empower small businesses.
By using human-centered design methodologies
to explore potential products and services,
we balance three different factors:
Desirability (human factor), viability (business factor),
and feasibility (technical factor) - always having
desirability as the starting point to any challenge.
We aim to create solutions for people, which is why the
human factor is important in this process.
These methods have been used by businesses, social
entrepreneurs and other innovators to create user
centered solutions for many different types of
challenges.
4. EXPLORING OPPORTUNITIES
DESIREABLITY
HUMAN FACTOR
Does anyone need / want this?
FEASABILITY
TECHNICAL FACTOR
Can we do this?
VIABILITY
BUSINESS FACTOR
Should we do this?

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4.2 Concept jam
Collaboration is the core of design thinking. Having a
team of people with different strengths and multiple
perspectives enables you to take on complex
challenges.
With this in mind, we teamed up with the Oslo-based
startup community StartupLab and invited several
stakeholders to take part in a half day workshop - a
Concept Jam.
Participants ranged from small businesses, banks,
accountants, and accounting software providers.
Additionally, representatives from EVRY with
background in technology, business development, and
design participated. The aim was to create ideas and
concepts seeking to find tomorrow's solutions for today's
small business challenges.

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We created four teams, with each team having one
representative from each knowledge domain. Through
this cross-disciplinary method we wanted the outcome
to solve some of the problems that small businesses
face.
We started the day with a brief introduction to the topic,
our findings and insights, before we presented the teams
with this challenge:
How can we create a banking experience that is...
SUPPORTING • STRENGTHENING • EFFICIENT •
TIMESAVING • TAILORED •
UNDERSTANDING • ENGAGING •
PROBLEMSOLVING • RELEVANT • VALUABLE •
BETTER • KINDER • SIMPLER REVOLUTIONARY
...for people in small businesses.
The outcome of this workshop is five different concepts,
which all target the needs of small businesses (support,
time, funding, and tailoring).
4. EXPLORING OPPORTUNITIES

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4.3 Concept 1: Smart Guide
PROBLEM:
Small businesses have a need of support and advice
from their bank all the way from the start-up phase and
throughout their lifespan. It is perceived that the bank
holds information on the small businesses, but that they
only use this information for their own needs. Can this
information be used for advising small businesses on
banking activities?
SOLUTION:
This solution conceptualises how collected data can be
used for providing relevant information and advice. In
this way, the bank can be perceived as a partner for
the small business.
Advice and suggestions to the small businesses are
based on their previous actions. The offered support can
be combined with a web-guide providing relevant
information and a social network with other
entrepreneurs. This enables the business to compare
themselves with other businesses going through similar
challenges.
SIMILAR CONCEPTS:
Barclays Local Insights provides a service that transform
their collected data into tailored infographics based on
the location of each business. Small businesses can use
this to compare their own situation with similar
businesses.3
3: https://www.insights.barclays.co.uk/

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Concept 2: External Invoice Receiver
PROBLEM:
Small businesses are busy. Paperwork, day-to-day
banking, and keeping track of incoming and outgoing
payments are time-consuming. Small businesses want
solutions that help them saving time.
SOLUTION:
The external invoice receiver concept makes it easy to
pay bills. The incoming invoices are transformed to a
digital format and transferred to the online bank. Here,
the small business can then access the digitalised
invoices and accept, re-categorise, or forward them to
the accountant for questions.
SIMILAR CONCEPTS:
ABBYY offers accounting solutions that enable users to
scan and digitalise invoices. This provides businesses with
the possibility to handle invoice statuses, due dates, and
payment liabilities faster. The solution also helps
improving forecasts of future payments.4
4. EXPLORING OPPORTUNITIES
4: www.abbyy.com/solutions/accounts-payable-automation/

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Concept 3: Bank Feed
PROBLEM:
Different small businesses have different needs for
banking services. Hence, they want the received
services to be tailored their specific needs and to not
be put in a box.
SOLUTION:
This concept transform the online bank into a feed-
based interface that collects tailored features of each
small business into one platform. It will function as a drag
-and-drop real-time feed that allows the small business
to personalise their own online bank.
Functionalities to add in this platform can for instance
be an automated overview of invoices and payment.
This lets the business know the size of the available funds
for the rest of the month.
SIMILAR CONCEPTS:
The Swedish solution Tink offers a feed based financial
overview. This economy app automatically helps the
user categorise and organise future spendings.5
5: www.tink.se

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Concept 4: Community Hub
PROBLEM:
Starting up a business is highly challenging. Hence,
young businesses look for a natural source for advice
and partners who can help them along the way.
SOLUTION:
Instead of banks trying to answer the same questions for
different small businesses, the bank can bring businesses
facing the same problems together in a startup hub. This
enables these small businesses to discuss issues with like-
minded. At the same time, the solution saves time for the
involved bank. Furthermore, the bank can bring in key
stakeholders to the community to reduce the distance
to possible partners for small businesses.
SIMILAR CONCEPTS:
American Express Open Forum provides a forum with
blog posts targeted at small businesses. This forum offers
insight, inspiration, and connections for small businesses
to grow their business.6
Additionally, DNB offers a user forum and a web
community where small businesses can receive support
from employees with knowledge in starting up a
business.7
4. EXPLORING OPPORTUNITIES
6: www.americanexpress.com/us/small-business/openforum/explore/
7: www.dnb.no/labs/forum/

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Concept 5: Facilitating Lending Options
PROBLEM:
Small businesses may enter a situation where they need
financial help to grow their business, invest in new
machines, refurbish their offices or similar. However,
funding is not always possible through the bank. If the
businesses do not have the opportunity to borrow from
their private economy or peers, the businesses might not
know where to turn for help.
SOLUTION:
In instances where small business loan applications have
been rejected, the bank could provide information and
advice on seeking alternative funding, for example
through crowdfunding or peer-to-peer lending. This will
help retain the bank's empathetic relationship with their
customer and reduce the likelihood of customer
migration to other banks.
SIMILAR CONCEPTS:
Fidor has added crowdfunding as part of their service
offerings. This enables the German bank to offer
alternatives for small businesses, when applications for
traditional bank loans have been rejected.8
8: www.fidor.de

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5
5.1 Concluding
remarks
5.2 Goals and
strategies
THE WAY FORWARD
4.3 Further reading

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5.1 Concluding remarks
In some cases, banks have based their small business
service offerings on the solutions for large businesses.
However, small businesses’ needs are more similar to
those of private customers. They have limited
knowledge within banking and accounting, and want
solutions that are digital, fast, and simple. On the other
hand, it is not a good alternative to let the owners of
small businesses use their personal online bank for the
business, as the features are not sufficient.
Small businesses need insight and tools to help them with
their business administration. Providing this will allow the
bank to tie a closer relationship with the small businesses
and become a more relevant service provider.
Additionally, it will make it easier for the bank to identify
when these businesses are beginning to face difficulties
and help them back to good financial health. When
your customers do well, you do well.
5. THE WAY FORWARD
Small businesses have traditionally been an underserved customer segment amongst providers of financial services.

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5.2 Goals and strategies
1. INCREASE, COMBINE AND SHARE KNOWLEDGE
 Increase in-house knowledge about small businesses. Start with analysing and gathering data about your existing
customers.
 Consider hiring people with experience from small businesses who will work exclusively with this segment.
 Partner up with fintech startups, technology companies, accounting firms, software developers or other banks to
strengthen the team.
2. CO-CREATE HOLISTIC AND VALUABLE USER EXPERIENCES
 Understand the journey that customers take through the different touchpoints of your services.
 Craft each interaction you have with your customers.
 Embrace digital and ease of use.
 Focus on seamless interactions across channels.
Based on the research findings, we have listed four suggested goals and possible ways of achieving
them. Depending on the bank’s customer base and strategic choices, one can pursue some of the
goals or all four.

40. PAGE 40INNOVATION LAB
3. BECOME A TRUSTED PARTNER AND GAIN LOYALTY
 If you cannot serve all small businesses, aim for gaining proficiency within specific sub-segments. Show that you
are relevant for these and that you understand their needs.
 Provide small businesses with solution that meet their needs before they know they have them.
 Be transparent. Show what you know about the customer. Tell them how you perceive their business. If they do
not get finance when they apply for it, tell them why and suggest solutions.
4. EMPOWER SMALL BUSINESSES
 Provide small businesses with relevant information.
 Communicate in a language they will understand.
 Create segmented customer groups, where small businesses can meet like-minded.
 Reduce the paperwork and strive for creating frictionless operations.
5. THE WAY FORWARD

41. PAGE 41 INNOVATION LAB
5.3 Further reading
WORLD BANK GROUP
 Doing Business Economy Profile 2015 : Norway
(2015)
OECD
 Financing SMEs and Entrepreneurs 2015 (2015)
IFC - International Finance Corporation
 The SME Banking Knowlegde Guide (2010)
 Why Banks in Emerging Markets are Increasingly
Providing Non-Financial Services to Small and
Medium Enterprises (2012)
 www.smetoolkit.org
BAIN and COMPANY / Institute of International Finance
 Building the retail bank the future (2014)
 Addressing SME Financing Impediments in Europe:
A Review of Recent Initiatives (2015)
 Restoring financing and growth to Europes SME
(2013)
 Customer Loyalty in Retail Banking - Global Edition
(2014)
DEN NORSKE REGJERING
 Små bedrifter, store verdier (2012)
DANMARKS NATIONALBANK
 Rapport om betalinger mellem virksomheter (2015)
ERNST & YOUNG
 Global banking outlook 2015 - Transforming
banking for the next generation (2015)
 Inforgraphics (2015)
The Competition and Markets Authority and Financial
Conduct Authority (UK)
 Banking services to small and mediumsized
enterprises (2014)
PWC
 Banks’ small business imperative - New strategies
for offering digital services for SMEs (2015)
MACKINSEY & COMPANY
 The fight for the customer - McKinsey Global
Banking Review (2015)
 Speed and scale - Unlocking digital value in
customer journeys (2015
 What it takes to deliver breakthrough customer
experiences (2015)
SCHIBSTED
 Future report: Looking for the next big thing (2015)
VENTURESCANNER
 Making Sense of the FinTech Startup Ecosystem

42. PAGE 42INNOVATION LAB
BCSG
 SME knowledge center
IDEO
 The Field Guide to Human Centered Design (2014)
 www.designkit.org
BANK NXT
 3 fintech pathways to becoming your SME customers`
primary bank (2015)
 Can an online-only banking model meet the needs of
SMEs? (2015)
 For SMBs, it’s not about the money, money, money (2015)
 The most innovative banks of 2015 (2015)
FORBES
 The Six-Minute Loan: How Kabbage Is Upending Small
Business Lending -- And Building A Very Big Busines (2015)
 3 Companies That Are Transforming Small Business Lending
(2015)
INVESTOPEDIA
 Value Added (2015)
5. THE WAY FORWARD

43. PAGE 43 INNOVATION LAB
Bank 2020 is researching how banks will
be affected by technology and business
drivers in the near future.
The research is conducted in
collaboration with several partner
banks, as well as external and internal
domain experts.
These insights will be published in a series
of whitepapers, further used to generate
new ideas and develop new concepts
within EVRY.
Bank 2020 research program
Miriam Øyna
Journalist / UX Researcher
Miriam.Oyna@evry.com
Edith Isdal
UX Designer / Researcher
Edith.Isdal@evry.com
Gitte Zenna Hjort
Digital Strategy / UX Researcher
Gitte.Hjort@evry.com
Matt Johnston
UX Designer / Researcher
Matt.Johnston@evry.com

44. PAGE 44INNOVATION LAB

45. PAGE 45 INNOVATION LAB
We accelerate innovation in EVRY
creating the financial solutions of the future.
EVRY Innovation Lab
First home buying
for Millennials
Buying a home is the first major financial
event for the Millennials. Banks need to
recognize and alleviate the uncertainty
experienced by Millennials when
designing digital services.
Engaging the
Millennials
Millennials are not engaged with banks.
This paper brings insights to how banks
can engage with this generation by
exploring their mindset, lifestyle and
needs.
Big Data
in banking
Norwegian banks are not using their
data to optimize their decision making
process and improve their business. This
research explores the value of Big Data
in banking.
Small Business
Banking
Small businesses are not often prioritised by
banks, even though they account for a
large part of the GDP in the Nordics. How
can banks create solutions that bring value
for both small businesses and banks?
The New Wave of
Artificial Intelligence
Artificial Intelligence is becoming
increasingly prevalent in our everyday lives.
This paper investigates the possible
implications of the rise of Artificial
Intelligence in the banking industry.
Blockchain: Powering
the Internet of Value
Blockchain is poised to become a massive
disruptor for the financial world. This paper
describes the technology, how it will alter
the financial world, and a recommended
strategy for financial institutions.
evry.com/innovationlab
jarle.holm@evry.com
VP Innovation & Business Development
Bank 2020 research papers

46. We bring information to life