In a significant move aimed at enhancing services for small and medium-sized enterprises (SMEs) in the UK, Marqeta, a leading global modern card issuing platform, has partnered with OakNorth, a digital bank specialising in business banking for entrepreneurs. This collaboration will see the introduction of a commercial card tailored for OakNorth’s Business Banking customers, leveraging Marqeta’s noteworthy capabilities in providing flexible and customizable payment solutions.

SMEs form the backbone of the UK economy, representing 99.9% of all businesses and providing a majority of private sector employment. However, these businesses have been facing escalating challenges, particularly with increasing operational costs which, in 2023, were reported to be £10,000 higher than the previous year. Moreover, the Bank of England has highlighted an SME funding gap approximating £22 billion. Addressing such critical financial stress points, the partnership between OakNorth and Marqeta aims to furnish SMEs with advanced banking tools historically reserved for larger commercial customers.

OakNorth Bank, since its inception in September 2015, has been at the forefront of supporting scale-up stage businesses, particularly those generating between £1 million and £100 million in turnover. The bank’s efforts have not only fostered business growth but have also contributed to the creation of over 40,000 new jobs. OakNorth’s focus on serving ambitious entrepreneurs who are often overlooked by traditional banks makes this partnership particularly strategic.

Marqeta’s platform is renowned for its innovative approach to payment solutions, enabling businesses to have greater control over their financial operations. With features like customizable controls on commercial cards, OakNorth’s SME customers will now be able to manage their expenditures more effectively and gain comprehensive insights into their financial health. These capabilities are essential for businesses navigating the complexities of growth and economic uncertainty.

Todd Pollak, Chief Revenue Officer at Marqeta, emphasized the inadequacy of traditional banking products for meeting the unique needs of SMEs, stating that these businesses require flexibility during critical growth phases rather than a one-size-fits-all approach. Marqeta’s technology enables OakNorth to offer a bespoke banking experience to its customers, complete with tools that facilitate investment back into the businesses.

Furthermore, Marqeta’s global platform ensures that as OakNorth continues to expand, it can maintain this tailored banking experience across new markets, which is crucial for businesses scaling internationally. The application of such advanced technological solutions in banking signifies a pivotal shift towards more adaptive and supportive financial services for SMEs, who play a critical role in driving innovation and economic growth.

This collaboration between OakNorth and Marqeta ultimately strives to bridge the gap in financial services accessibility for SMEs, providing them with not only the tools to survive but to thrive in today’s dynamic economic landscape.