Juni is riding on two big waves: small business and e-commerce. Being positioned as the banking platform “tailor made for the marketing & e-commerce ecosystem”, Juni caters to SMEs that seek a banking alternative that is just as globally scalable and digitally native as the rest of the digital services that comprise the tech stack of a modern digital business, such as Google (customer acquisition), Shopify (online shop) or Stripe (payments). SMEs that sell services or goods online are usually stuck with a traditional bank account by local incumbents that neither offers products tailored for e-commerce sellers, such as direct integrations with shop systems, merchant loans or credit cards with high limits, nor offers a customer service that understands their unique needs and pain points. Hence, Juni is filling the banking and financing gap within the digital service stack of e-commerce sellers and even goes beyond that by actually integrating with other core services, such as accounting and online shop platforms, to become the system of intelligence that e-commerce sellers can tap into to better analyse and steer business performance.
Given the large size of the European SME market segment, a first wave of fintech start-ups has been trying to grab market shares from incumbent banks over the past ten years. Our open SME fintech database provides an overview of these new digital SME-focused banks and payment providers, such as Holvi, Tide, or Revolut Business. However, there’s yet not one large pan-European digital bank focusing mostly on SMEs, in terms of customer numbers or revenue, in contrast to consumer banking. One reason why scaling up such propositions might be the large fragmentation of SMEs coupled with segment-specific banking needs, resulting in high degrees of segment-specific product optimisation to achieve product-market-fit (PMF). On top of that, SME bank accounts are very sticky. Once they are set up and connected to accounting systems, it’s a challenge to convince a CFO to switch.