Andrew Martin is CEO of SMEB, a pioneering fintech company committed to supporting small businesses across the UK.
SMEB, which stands for Small & Medium Enterprise Banking, was founded by British veterans in response to the rapid decline of local banking services, a crisis that has left millions of small businesses and individuals underserved. Recognizing the urgent need for accessible financial services, SMEB has emerged as a vital player in the fintech landscape.
Approved as a payment institution by the Financial Conduct Authority (FCA), SMEB is well positioned to revolutionize the banking experience for SMEs. The company plans to significantly expand its presence across England this year, rolling out its innovative proprietary banking hubs. These hubs aim to fill the void left by traditional banks by providing essential financial services to small businesses, particularly in rural and underserved areas.
Under Martin’s leadership, SMEB is not just a fintech company; is a mission-driven business, committed to restoring and improving banking services for the backbone of the UK economy: small and medium-sized businesses. As SMEB grows, it continues to leverage cutting-edge technologies and customer-focused solutions to meet the evolving needs of the UK’s small business community.
What was the inspiration behind SMEB?
The inspiration behind SMEB came from a culmination of industry experience and careful observation of market gaps. With over thirty years of experience in the payments industry, I led G4S in the management of cash centers, overseeing the transition of cash centers from banking to retail and pioneering the rollout of standalone ATMs in the UK. This extensive experience has honed my ability to identify market changes and opportunities. One of my fundamental beliefs is that the best ideas always come from listening to customers. When customers are at the center of innovation, the right path is naturally followed.
The idea for SMEB came about when we observed the alarming rate of retail bank branch closures. More than 5,000 branches have closed in the past five years, with another 400 closures expected this year. This trend has had a significant impact on SMEs, particularly in rural areas, limiting their access to essential financial services. During the pandemic, we also noticed a shift in the use of cash and recognized that most new fintech solutions were consumer-centric, leaving SMBs underserved. The UK government’s push for open banking regulation has highlighted the potential of integrated finance, presenting a clear opportunity.
Seeing these gaps, we came up with the Small & Medium Enterprise Banking (SMEB) system to restore banking and cash services for SMEs in rural areas. Our mission is to leverage open finance and provide all payment options, including cash, to support SMEs efficiently. We believe in lean, agile organizations that can adapt quickly to market changes, which contrasts sharply with the slowness often seen in large companies. I spend a lot of time in the market, attending conferences, meeting partners and understanding customer frustrations and market inefficiencies.
Listening to customers has been key in shaping SMEB. SMEs often feel unsupported by retail banks, spending too much time running their businesses without adequate support. As an entrepreneur myself, I have experienced these challenges firsthand. SMEB aims to fill this gap, using technology to make life easier, simpler and more efficient for SMEs, especially in rural areas.
Who do you admire?
I admire Jamie Dimon, CEO of JPMorgan Chase. He holds a key position in global financial services and has demonstrated exemplary leadership and strategic thinking in addressing the complexities of the financial world.
While I have traditionally admired figures like Porter and Kotler and iconic businessmen like Bill Gates, more recently my admiration has extended to those who challenge the norm and never give up, like Elon Musk. In addition to business leaders, I am inspired by people who overcome disabilities, demonstrating resilience and determination. Their stories teach us to persist, to focus on our mission and to never give up.
Looking back, is there anything you would have done differently?
When I reflect on my journey, I remind myself not to regret mistakes, as they shape our resilience and adaptability. However, I would have embraced our heritage in emerging markets sooner and highlighted our role in solving key pain points for businesses in these regions. Initially, we were undecided whether to focus on emerging markets or serve customers in developed markets. A clearer and earlier focus on our strengths could have accelerated our impact.
Another lesson is the importance of contingency planning. Business rarely goes as planned, so having backup plans is essential. Continuous learning is also key. The rise of social media has transformed sales and staying current and adaptable is vital.
What defines your way of doing business?
My approach to business is customer-centric. Listening to customers, especially those who are leaving, provides valuable insights. I have never had a bad encounter with a customer, even if they were frustrated. My advice to other entrepreneurs is to never turn down a meeting; you always learn something valuable. Use your ears more than your mouth and you will get crucial information.
I am determined and focused, qualities necessary to drive change and innovation. In business, I approach problems from three levels: strategic, tactical and operational. Maintaining control of all three guarantees success.
What advice would you give to someone starting out?
For anyone starting out, focus on building your business based on customer feedback. Understand your customer base and make sure your product or service adds value. Pilot your product to refine it based on feedback and adapt as needed. Think both long and short term and manage your finances within your established budget.
Building a strong and close-knit team is essential. Hire people who share your vision and who can be relied on. Our people at SMEB are innovative and take conscious risks, embracing innovation and technology.
Finally, structure your business to scale efficiently, ensuring longevity and profitability. Prioritize relationships and keep promises, as credibility is key to earning respect and loyalty in both the professional and personal spheres.