​How Customer and Market Insights shaped a bank’s new finance solution

Objective

With embedded finance reshaping how businesses access capital, A global bank's joint venture aimed to simplify how working capital is unlocked through B2B platforms and e-commerce integrations. The bank sought to bring a differentiated solution to market that would address persistent cash flow challenges among UK SMEs. The research needed to:

• Identify the highest-potential customer segments
• Test the appeal and clarity of the product proposition
• Prioritize features and benefits based on real customer needs
• Identify barriers to adoption and inform go-to-market messaging

Research design and execution

Phronesis designed a three-phase research project to shape the DIF solution and support strategic decision-making:

• Desk research: Defined the invoice financing landscape, competitor offerings, and perception gaps
• Stakeholder interviews: Captured internal and external priorities across product, category, and development teams
• Quantitative survey: Evaluated proposition appeal, feature preferences, and current usage patterns across working capital solutions

Target audience and scope

• 200+ UK SMEs across 16 industries
• Annual revenue between £1m–£350m
• Mix of decision-makers and users of working capital solutions
• 1-month fieldwork

Results

The study uncovered key insights critical to proposition refinement and product positioning:

• Businesses face ongoing liquidity pressures and rely on a mix of credit options to manage working capital
• Satisfaction with existing receivables finance providers is mixed, highlighting a segment open to change
• Simplicity, speed, and absence of collateral emerged as strong drivers of appeal
• Perceived cost and lack of awareness remain key barriers to adoption
• Features such as selective drawdown and integration with familiar banking channels were seen as essential

Impact

The research will be used to design the product and align internal stakeholders around a unified go-to-market strategy. Key next steps include refining product messaging, prioritizing feature development, and preparing for rollout through the bank's existing SME customer base.

By grounding the product in real customer feedback, the client is positioned to:

• Develop a fit-for-purpose solution that addresses key SME financing needs
• Compete effectively in a crowded working capital landscape
• Use insight-led messaging to drive awareness and adoption