Getting to Know You: Andrew Martin, CEO of SMEB

Andrew Martin serves as the CEO of SMEB, a pioneering fintech company dedicated 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 revolutionise the banking experience for SMEs. The company plans to significantly expand its footprint across England this year, deploying its innovative proprietary banking hubs. These hubs aim to fill the void left by traditional banks, providing essential financial services to small businesses, particularly in rural and underserved areas.

Under Martin’s leadership, SMEB is not just a fintech company; it is a mission-driven enterprise committed to restoring and enhancing banking services for the backbone of the UK economy—small and medium-sized enterprises. As SMEB scales up, it continues to leverage cutting-edge technology and customer-centric solutions to meet the evolving needs of the UK’s small business community.

What was the inspiration behind SMEB?

The inspiration behind SMEB stemmed from a culmination of industry experience and a keen observation of market gaps. With over thirty years in the payments industry, I have led G4S into cash centre management, overseeing the transition of cash centres from retail banks and pioneering independent ATM deployment in the UK. This extensive experience has sharpened my ability to identify market changes and opportunities. One of my core beliefs is that the best ideas always come from listening to customers. When customers are at the heart of innovation, the right path is naturally followed.

The idea for SMEB emerged when we observed the alarming rate of retail bank branch closures. Over 5,000 branches have closed in the past five years, with an additional 400 closures expected this year. This trend significantly impacted SMEs, particularly in rural areas, by limiting their access to essential financial services. During the pandemic, we also noted a shift in the use of cash and recognized that most new fintech solutions were consumer-focused, leaving SMEs underserved. The UK government’s push towards regulating open banking highlighted the potential of embedded finance, presenting a clear opportunity.

Seeing these gaps, we conceptualized Small & Medium Enterprise Banking (SMEB) to restore banking and cash services for SMEs in rural locations. Our mission is to leverage open finance and provide all payment options, including cash, to support SMEs efficiently. We believe in lean and agile organizations that can quickly adapt to market changes, which contrasts sharply with the sluggishness often seen in large corporates. I spend significant time in the market, attending conferences, meeting partners, and understanding customer frustrations and market inefficiencies.

Listening to customers has been crucial in shaping SMEB. SMEs often feel unsupported by retail banks, spending excessive time managing their businesses without adequate support. As a business owner myself, I have experienced these challenges firsthand. SMEB aims to fill this void, using technology to make life easier, simpler, and more efficient for SMEs, especially in rural areas.

Who do you admire?

I admire Jamie Dimon, the CEO of JPMorgan Chase. He holds a pivotal position in global financial services and has shown exemplary leadership and strategic thinking in navigating the complexities of the financial world.

While I have traditionally looked up to 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, such as Elon Musk. Beyond business leaders, I am inspired by individuals who overcome disabilities, demonstrating resilience and determination. Their stories teach us to persist, focus on our mission, and never give up.

Looking back, is there anything you would have done differently?

When reflecting on my journey, I remind myself not to regret mistakes, as they shape our resilience and adaptability. However, I would have embraced our emerging markets heritage earlier and emphasized our role in solving significant pain points for businesses in these regions. Initially, we were torn between focusing on emerging markets and servicing developed market customers. A clearer, earlier focus on our strengths might 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 crucial. The rise of social media has transformed sales, and staying updated and adaptable is vital.

What defines your way of doing business?

My approach to business is customer-focused. Listening to customers, especially those who are leaving, provides invaluable insights. I’ve never had a bad meeting 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’ll gain crucial insights.

I am determined and focused, qualities necessary for driving change and innovation. In business, I approach problems from three levels: strategic, tactical, and operational. Staying in control of all three ensures success.

What advice would you give to someone starting out?

For anyone starting out, focus on building your business around customer feedback. Understand your customer base and ensure your product or service adds value. Pilot your product to refine it based on feedback and adapt as needed. Think both long-term and short-term, and manage your finances within the set budget.

Building a strong, like-minded team is critical. Hire individuals who share your vision and can be relied upon. Our staff at SMEB are innovative and take educated risks, embracing innovation and technology.

Finally, structure your business to scale efficiently, ensuring longevity and profitability. Prioritize relationships and keep your promises, as credibility is key to earning respect and loyalty in both professional and personal spheres.