Small business finance is moving from standalone banking products into more embedded digital tools, as banks, fintechs and payment providers add services designed to support SMEs with tax compliance, payment acceptance, credit visibility and AI adoption..
Lloyds has launched a free Making Tax Digital for Income Tax tool for UK small businesses, powered by BankiFi and embedded into the Lloyds Business Account. The tool is available exclusively to Lloyds Business customers at no cost and is designed to help sole traders and landlords comply with new Making Tax Digital requirements.
The launch comes as financial services providers continue to add tools that sit alongside core business accounts, payments and lending. In recent days, Starling Bank has extended its partnership with Adyen to offer tap to pay within the Starling app, Menna has partnered with Equifax UK to provide clearer credit insights through its AI Finance Assistant, and PayPal has announced a partnership with Anthropic to offer AI training for small businesses.
Lloyds and BankiFi embed tax tools into business banking
BankiFi’s technology platform has been integrated directly into Lloyds’ Business Account, allowing eligible small business customers to manage digital tax records and submit quarterly updates to HMRC through the Lloyds banking app.
The tool is HMRC-recognised and includes quarterly updates to HMRC, estimated tax views and end-of-year filing. It is aimed at helping small businesses move from spreadsheet-based accounting to a digital solution connected to their bank account.
Ruchir Rodrigues, BCB client strategy and commercial director at Lloyds, said: “Small businesses are looking for simple, cost-effective solutions that save time. By working with BankiFi to embed our Making Tax Digital tool within the Lloyds Business Account for free, customers can manage their tax administration directly within their banking app, without needing a separate accounting subscription.”
Mark Hartley, CEO at BankiFi, said: “This partnership is about delivering exactly what small businesses need, and in turn making Lloyds the best bank for businesses. Our platform enables Lloyds to quickly introduce the functionality customers want, while creating the foundation to continuously evolve their proposition in line with changing customer demand.”
Starling and Adyen add payment acceptance inside the banking app
Payment acceptance is also being brought closer to business banking. Starling Bank and Adyen have extended their partnership to allow Starling’s SME customers to accept contactless card payments directly on eligible smartphones through tap to pay.
The feature enables small businesses to take card and mobile wallet payments without buying or managing separate card terminal hardware. According to the companies, the full process, from onboarding to settlement and refunds, is managed within the Starling app, with funds landing in the customer’s Starling account the next day.
Starling also plans to add card payment links to its free in-app invoicing feature later this year, allowing SME customers who invoice to collect payments through card or mobile wallet.
Nicole Olbe, UK MD at Adyen, said: “Tap to pay technology removes traditional barriers to accepting card payments by turning a smartphone into a secure, user-friendly payment terminal. By combining Adyen’s financial technology and banking capabilities with Starling’s UK banking infrastructure, we are helping UK SMEs bridge the gap between their payment processing and daily financial management.”
Sami Kade, director of customer solutions at Starling, said the launch was intended to help small businesses “get paid more quickly and easily”, adding that tap to pay and future payment links would give customers another tool to support the process of running their business.
Menna and Equifax target SME credit visibility
Access to finance is another area where providers are adding more digital support. Menna, a UK-based AI Finance Assistant, has partnered with Equifax UK to help small businesses better understand their credit profiles and how lenders may assess them.
The partnership uses Equifax data within Menna’s AI Finance Assistant to provide small businesses with clearer explanations of their creditworthiness, including factors such as late payments, outstanding invoices, cash flow, account history and whether information is up to date.
The companies say the aim is to help SMEs identify potential issues before applying for finance, rather than only discovering them after a loan application has been declined.
Dan Mines, co-founder of Menna, said: “Small businesses should not have to wait for a loan application to be denied before understanding their creditworthiness. By combining Menna’s Agentic AI-driven insights with trusted Equifax data, we’re helping business owners understand why a bank says no, what is affecting their credit profile, and the practical steps they can take to improve how they are seen by lenders – giving them greater confidence to borrow, plan ahead and grow.”
Matt Jones, VP, Partners at Equifax UK, said: “Small businesses are the backbone of the UK economy, yet too many still face a confidence shortfall when it comes to seeking funding. Through our partnership with Menna, we want to help change that by democratising access to the financial and credit insights that have traditionally felt out of reach.”
The partnership comes as UK small businesses continue to face challenges accessing finance. Menna and Equifax cited data showing loan acceptance rates below 50%, down from 67% before the pandemic, and SME confidence in applying for finance at a 10-year low.
PayPal and Anthropic focus on AI skills for small businesses
Digital support for SMEs is also extending into AI adoption. PayPal has partnered with Anthropic to launch AI Fluency for Small Business, a free online course aimed at helping small business owners use AI tools more effectively.
According to PayPal, 82% of small businesses say adopting AI is essential to staying competitive, while 73% said they do not have the tools or training to do so.
The course includes nine lessons featuring AI fluency researchers and small business owners, with an interactive, on-demand format. Learners receive a certificate on completion.
Amy Bonitatibus, chief corporate affairs officer at PayPal, said: “PayPal is proud to partner with Anthropic to help small and medium-sized businesses harness the full potential of the AI-led economy. Together, we are equipping business owners and entrepreneurs with the tools, expertise, and trusted infrastructure they need to compete and thrive – and creating new opportunities for them to innovate, grow, and better serve their customers.”
Anthropic is also launching Claude for Small Business, a plugin that connects Claude to tools used by small business owners, including PayPal, QuickBooks, HubSpot and Canva. Through the PayPal connection, Claude can support tasks such as invoicing and refunds, with approval required before anything is sent or paid.
Dr. Kristen Swanson, AI Fluency Researcher at Anthropic, said: “The next wave of AI adoption is going to be driven by corner shops, solo founders, and family businesses – some of the most resourceful operators in the economy. AI Fluency for Small Business gives them practical, proven training that’s already worked for more than a million learners.”
The announcements span different areas of SME finance, but all focus on reducing separate admin tasks for small businesses across tax, payments, credit and AI adoption.
