Various studies have found that banks have neglected the needs of small businesses when it comes to delivering digital services for reasons including the impact of complex ownership structures on customer onboarding and difficulties establishing creditworthiness of early stage businesses, says eter-Jan Van de Venn, CCO of Five Degrees.

Alternative finance providers and other fintechs have been quick to target this sector, which he says leads some small businesses to question the value of traditional banks. Marketplace banking offers these institutions an opportunity to maintain their value to these customers.

In this environment, banks and fintechs provide customers with access to products and services from other providers as well as their own, interconnecting via open APIs.