Awards for Excellence 2016
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It is encouraging to find many European banks getting involved in the lynchpin of the European economy, small and medium-sized enterprises. In its German business, for example, Commerzbank has reoriented its global network towards internationally orientated Mittelstand clients (even if many of these are much bigger than the EU’s definition of an SME). Intesa Sanpaolo has improved methods of ensuring its SME loan growth in Italy is sustainable by identifying top-performing larger companies and then seeking to grow market share among those firms’ SME suppliers.
British banks including HSBC and Lloyds are also focusing more on SMEs, and not just because of government encouragement. Lloyds, in particular, has been careful not to miss out on the burgeoning technology and financial technology industry around London; it has positioned its regional SME industry specialists accordingly.
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Angel Rivera, Santander |
However, Santander wins best bank for SMEs, following a concerted push to grow in the sector, ensuring that these clients are a core part of its business model in Europe. Ultimately overseen by global head of retail banking Angel Rivera, a specialist head-office division is implementing Santander’s new global strategy in SMEs (launched in 2014) adapted to national characteristics by national SMEs units. Its growth in SME market share in the UK has been particularly impressive.
Santander’s strategy is partly premised on the idea that financing is not its clients’ biggest concern compared with issues such as access to international markets, staff recruitment and training. Efforts to cement SME relationships have therefore included an international SME desk that organizes trade missions and an online SME trade portal; branch workshops and masterclasses with more experienced companies; and agreements with universities to help train and recruit staff, including Santander-sponsored internships.
When financing is a challenge, Santander has some forward-looking answers. It has launched a €600 million facility to provide mezzanine funding for UK, Portuguese and Spanish clients with high potential, but whose growth projects lie outside the bank’s credit policy. In the UK, it has referral agreements with crowdfunders including Funding Circle. Most recently, it is combining credit-decision resources with US online lender Kabbage (in which, like ING, it is an investor) to offer same-day working capital decisions of up to £100,000 in the UK.
