Small businesses make up around 90% of businesses and 50% of employment worldwide (World Bank), and they are the largest source of new job creation. Without question, they are foundational to the global economy.
 

They are also the most likely businesses to depend on local bank services. Many have to make runs to the bank to deposit cash or withdraw change on a daily basis.
 

So, what happens to these essential businesses when all of the local bank branches close?

Bank branches have been closing at a surprising rate in recent years in many parts of the world, as more people have migrated to digital banking and as cash usage has declined. In some rural areas, residents and businesses are being left without a single bank branch.
 

There’s plenty of talk in the media today about continued access to cash and banking services for consumers, but much less on the challenge this poses for small business.
 

The need to walk or drive to the bank regularly is already a weight on these small businesses, with the time and labor costs involved, as well as the security risk of transporting it. Having to drive to another town or city to get basic banking services is a burden that these businesses don’t need.
 

Smart Solutions for Small Businesses
 

Our banking infrastructure was designed for a pre-digital, high-cash age, and, while we remain a long way from the much-promised cashless society, we are now in a less-cash era in many countries.
 

We understand the economic pressures on bank branches, many of whom are no longer receiving enough footfall to support their running costs. But without them, there is a real risk that small businesses in some areas will have to either stop accepting cash (which excludes a significant portion of the population and hurts their business) or find a way to absorb the cost and resource commitment involved in travelling to the bank when they should be serving their customers.

Glory is invested (quite literally) in finding solutions to today’s bank access challenges that will benefit consumers, small businesses, and banks. In the age of digital innovation, new solutions are required.

One of those solutions is for banks to collaborate and use shared infrastructure, with multiple banks providing services at one location. This allows banks to keep serving their customers, which they are keen to do, but with manageable overheads. The idea is now being tested in a number of different formats, but one way is being pioneered by OneBanks Hub.
 

OneBanks set up compact banking kiosks within local convenience stores, where users of any bank can come in and access banking services such as cash deposit and withdrawal, bill payment and more. In one of the company’s pilot schemes in Denny, Scotland, 80% of deposits are being made by local businesses, demonstrating the value of the service to the small business community.

Another smart solution we have recently invested in is Clip Money, who set up IoT-enabled deposit devices within malls, shopping centers, large stores, etc., where businesses can conveniently make their deposits without having to travel, again irrespective of who they bank with. This is a leaner solution, but it covers the most basic daily needs for small businesses and is highly flexible and easy to implement.
 

Of course, Glory has already been working on “both sides of the aisle” for many years to help banks and businesses with their cash operations. For banks, our solutions have allowed them to drive ever increasing efficiency into their cash operations, positively impacting the P&L of their branches. For retailers and hospitality providers, our solutions recycle cash within their business, reducing the number of deposits and withdrawals they actually need to make.
 

It’s clear that as our banking and payment culture evolves, so too must banks and businesses in order to survive. In this new landscape, small businesses are particularly vulnerable. But Glory believes in innovation. We believe in finding real solutions for people and businesses. Whether in our own labs or through investing in and integrating with an eco-system of specialist solution providers, you will find Glory at the forefront, helping our customers not just to survive, but to thrive.

To discuss how we and our partners can help your business, get in touch.