Anne Boden MBE Column

At any time of great change, a new set of winners always emerge. The pandemic has changed so much for the nation’s entrepreneurs, but there are already clear signs that they are doing what entrepreneurs do: thinking quickly, adapting and finding a new way through.

From what we have seen from our own business customers, many, many UK entrepreneurs have been quick to move with the times. There are already some very interesting adaptations of existing models to match the abrupt change in circumstances. Businesses that were efficient at delivery, have expanded that side of things into new areas as online sales have rocketed. Others have anticipated the massive lifestyle changes that are expected to endure for some time to come and have prioritised producing goods for the home and garden. Those that are in traditional industries, such as catering, are adapting premises, so they can continue to operate while implementing social distancing. Plus, of course, our growing band of tech entrepreneurs are already in pole position to expand in the current trading environment. Digital will inevitably be key to managing some of the big lifestyle changes ahead.

From Starling’s viewpoint, we entered this crisis as a small bank and are emerging as a large one. When the lockdown loomed, our first challenge was to get the entire team set-up to run the bank from their homes, a feat we managed in a matter of days. To be fair, the bank was originally designed to be run from a laptop, so we had a head start. Our second challenge was to work out what it was our customers really needed. Overnight, we ditched all the projects on our to do list that were no longer so important and, in the case of our business account holders, worked through the various pinch points that would slow down operations in the tough times ahead. On the smallest level, we quickly introduced in-app cheque deposits, so customers don’t need to leave their (home) office. On the largest, we worked hard at getting customers access to vital funds. We were the first of the new generation banks to be included in the government-backed loan schemes.

We became a lender under the Coronavirus Business Interruption Loan Scheme (CBILS), providing loans of £5,000 to £250,000 to SMEs struggling financially as a result of the emergency. When the government announced financial support of between £2,000 and £50,000 for SMEs via emergency Bounce Back Loans (BBLS), we got this scheme up and running at Starling in just a few days. Our priority was to make the processes quick, painless and efficient, which is crucial at times like this. Many SMEs reported applying for loans and receiving money in their account within two hours. That’s quite impressive, even by Starling’s efficient standards. There were, inevitably, some businesses that were disappointed, but I think our record will speak for itself. As we near the midpoint of 2020, we now look after more than 155,000 SMEs, which is 2.6% of the UK SME banking market, with deposits up 200% and more than £500 million of lending on our balance sheet.

For many businesses, including ours, making these big changes, takes courage and a willingness to see things a bit differently. It’s the entrepreneurs that understand this and are already making the changes now that are beginning to thrive.