England's banking network has decreased by an average of eight branches weekly, leading to over 3,700 closures since 2016. Despite this decline, entrepreneurship has thrived, with 2 million new businesses founded from 2017 to 2023. Many businesses are shifting to digital-first financial platforms, distancing themselves from traditional banks. The rise of 'banking deserts,' areas with a significant lack of branches, highlights this trend. Nearly 40% of UK SMEs are now using digital banking providers for their operational needs, focusing on speed and flexibility over physical access.
Over two million new businesses were launched between 2017 and 2023, far outpacing the 1.2 million business closures during the same period.
Lightyear's research highlights the emergence of 41 'banking deserts' in England, where a notable decline in physical bank branches per residents has occurred.
Nearly two in five UK SMEs now utilize digital-only banking providers, indicating a shift towards online platforms for financial management and access.
With an estimated £550 billion in potential savings across the SME market, digital platforms are attracting entrepreneurs seeking speed and integrated tools.
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