Metro Bank and BankiFi Launch SME Payment Solution

Metro Bank has joined forces with BankiFi, a provider of embedded banking solutions, to launch 'Invoice It', a new application designed to address the persistent issue of late payments faced by small and medium-sized enterprises (SMEs).

The app, available to Metro Bank's business and commercial current account holders, offers an end-to-end payments and accounts receivable solution. 

It can be accessed via iOS and Android mobile platforms or through a web-based interface, providing flexibility for businesses of varying sizes and technological preferences.

Tackling Late Payments

Late payments remain a significant challenge for SMEs in the UK, often impacting cash flow and hindering growth. 

The Federation of Small Businesses reports that 62% of small businesses have experienced late or frozen payments in the wake of the COVID-19 pandemic, exacerbating an already prevalent issue.

The 'Invoice It' app aims to streamline the invoicing process and accelerate payment collection, potentially reducing the time businesses spend chasing overdue accounts. 

This efficiency gain could prove crucial for SMEs navigating the current economic landscape, characterised by rising inflation and interest rates.

Nick Reid, Head of Strategic Growth at BankiFi, provides insight into the app's performance: “Metro Bank is a great example of a bank that's really listening to the needs of its business and commercial customers and ensuring they're being reflected in new products. 

“Our data shows that 73% of businesses using Invoice It are getting paid within just 2 days, often in advance of any invoice terms – significantly helping with their cash management.”

The app includes a built-in invoicing feature for businesses without existing accounting software. For those already using major accounting packages, 'Invoice It' offers compatibility, aiming to reduce the administrative burden associated with financial management. 

Fintech Integration Strategy

The launch of 'Invoice It' is part of Metro Bank's broader strategy to integrate fintech solutions into its service offerings. 

This initiative follows the bank's 'Magic Makers' programme, launched in 2021, which focused on collaborating with start-ups to implement new technologies.

The programme has already yielded tangible results, including the adoption of co-browsing technology to enhance customer support, the implementation of a digital blueprint for data insights and the development of an advanced voice assistant capable of handling complex customer requests.

Building on this success, Metro Bank launched a second Magic Makers programme in 2024, seeking innovative solutions in four key areas: improving customer experience, becoming the UK's best community bank, optimising systems and data, and promoting sustainable banking. 

Metro Bank's commitment to fintech innovation is further evidenced by its recent long-term collaboration with Infosys, announced in September 2024. 

This partnership aims to enhance the bank's IT functions and digitise business operations, with a focus on improving automation, refining data processing, and embedding artificial intelligence (AI) capabilities.

Ian Jackson, Director of Bank Accounts, Payments and Deposits at Metro Bank, comments on the strategic importance of the 'Invoice It' launch: “This year continues to be tricky for small businesses to navigate, which makes helping them get paid in the fastest most efficient way possible more important than ever. 

“At Metro Bank, we believe boosting cash management is one of the top priorities for UK businesses and enables Metro Bank to continue to attract new customers.”

Expanding Digital Offerings

The bank's focus on technology-driven solutions extends beyond payment systems to its lending products. Metro Bank has been developing specialist mortgages and other lending products, utilising digital capabilities to streamline these processes. 

This approach appears to be yielding results, with the bank reporting a 140% increase in approved business loans in early 2024 compared to the entire previous year.

This growth in business lending suggests that Metro Bank's digital transformation efforts are not only improving operational efficiency but also expanding its market reach. 

The ability to process and approve loans more quickly and efficiently through digital channels may be a key factor in this significant uptick in lending activity.

As Nick of BankiFi concludes: “The integration of fintech solutions like 'Invoice It' is not just about offering new features; it's about fundamentally changing how banks serve and support their SME customers in an increasingly digital economy.”

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