The panel was moderated by Ellie Duncan, Head of Content at Open Banking Expo, and featured:

• Emma Zaraisky, Payments Partnership Development Manager at Google
• Sophie Hossack, Head of Partnerships at Allica Bank
• Nicole Green, VP Product Strategy, Innovation & Policy at Yapily

In her opening remarks, Ellie welcomed the audience and emphasised the importance of this discussion. She noted that while open banking has often been discussed in the context of consumers, its potential for SMEs is equally powerful. SMEs, the backbone of the economy, stand to gain substantial benefits in terms of efficiency, productivity, and innovation. Ellie also pointed out that while the technicalities and policies of open banking are important, it is equally vital to spotlight the real-world impact it’s already having on businesses across the UK.

With the stage set, Ellie invited the panellists to introduce themselves and their organisations, kicking off a dynamic conversation on how open banking is fuelling SME growth and innovation.

How Open Banking is Already Benefiting SMEs

The first major topic was the role of data. Nicole Green highlighted how open banking is giving SMEs real-time access to financial data across multiple accounts, enabling better decision-making and financial planning. This, in turn, helps businesses streamline their operations, reduce manual workloads, and focus more on growth and innovation.

Sophie Hossack shared examples from Allica Bank’s customers, where businesses are using open banking to manage cash flow and improve their financial health. She mentioned how these data-driven insights allow SMEs to access more personalised lending solutions, making it easier for them to secure funding and manage working capital.

Emma Zaraisky expanded on these points, highlighting how open banking data is not just a tool for managing finances but also a gateway to developing innovative payment solutions tailored specifically for SMEs. She agreed with Nicole’s vision that open finance, which builds on open banking, will unlock even more opportunities for SMEs by broadening the range of available data sources.

Payments and Open Banking’s Impact on SME Growth

Ellie then shifted the discussion to the topic of payments, one of the core components of open banking. Nicole explained how open banking payments are already reducing transaction fees and processing times for SMEs, making it easier for businesses to get paid faster and manage their cash flow. The discussion also covered how these payment innovations are tackling issues like late payments, which can be a major challenge for SMEs.

Emma illustrated this with practical examples of how new payment methods, facilitated by open banking, are helping small businesses—such as plumbers or local retailers—accept payments more seamlessly, with reduced friction and lower costs.

The Need for Better Awareness of Alternative Payment Methods (APMs)

One key issue raised during the discussion was the lack of awareness among SMEs about alternative payment methods (APMs). Nicole Green pointed out that while open banking provides powerful tools to streamline payments and reduce costs, many SMEs are still not fully informed about these innovative solutions.

This gap in knowledge means that many businesses continue to rely on traditional, more expensive payment methods, missing out on the efficiency and cost benefits that APMs offer.

Emma Zaraisky noted that as the adoption of open banking continues to grow, more efforts need to be made to inform SMEs of the value of APMs. By ensuring businesses understand these solutions, the potential for greater efficiency and reduced operational costs can be fully realised.

The panel also touched on the future potential of commercial Variable Recurring Payments (cVRP). Nicole emphasised that cVRPs have the potential to revolutionise how SMEs handle recurring transactions with suppliers and customers, lowering administrative burdens and improving efficiency. Emma added that the flexibility and control offered by cVRPs would be especially valuable for SMEs, giving them more autonomy over payment management.

The Role of Policy in Open Banking’s Future

As the session progressed, Ellie steered the conversation towards policy, asking what steps are needed to accelerate the adoption of cVRP and other open banking innovations. Nicole called for more decisive action from the Payment Systems Regulator (PSR), particularly in initiating a pilot programme for cVRPs. She highlighted the need for a clear timetable, mandatory bank participation, and pricing structures that encourage widespread adoption.

Emma and Sophie both echoed the sentiment that more leadership is needed from regulators and industry stakeholders to ensure that the open banking ecosystem continues to evolve in a way that benefits SMEs. Expanding the scope of open banking beyond the largest banks (CMA9) and incorporating more financial institutions would also help foster greater innovation and competition.

Looking Ahead: What’s Next for SMEs and Open Banking?

The session concluded with a look ahead at what the future holds for SMEs and open banking. As Nicole noted, cVRP is likely to be a key focus area in the coming year, with more banks and fintechs working together to unlock its full potential. Sophie and Emma agreed that policy decisions made now will be critical to ensuring that these innovations are rolled out in a way that benefits SMEs and helps them thrive in an increasingly digital economy.

In her closing remarks, Ellie noted that the future of open banking is not just about improving financial services - it’s about giving SMEs the tools they need to grow, innovate, and succeed.