A report from non-bank financial services player Tyro has claimed that red tape is robbing more than 880,000 of Australia's two million small and medium sized businesses of four weeks' productive work time a year, costing the national economy almost A$7 billion annually.Tyro's  report, "Exploring banking inefficiencies for SMEs", found that 44 per cent of Australia's two million SMEs spend more than three hours every week checking, entering, paying and reconciling data, costing each business an average of A$7,800 a year.The survey of 804 Australian SME owner-operators commissioned by Tyro and conducted by Pureprofile in May 2016, found that:•    700,000 businesses, or 35 per cent of SMEs, believe their bank could be doing a better job;•    one million, or 50 per cent, of SME owner-operators are doing their own bookkeeping; and•    400,000, or 20 per cent, of SME owner-operators don't use any form of accounting software.Tyro CEO Jost Stollmann said SME banking was an industry in transition, and the major providers needed to make it easier for customers to do business.Tyro, in a media release, noted how Commonwealth Bank of Australia CEO Ian Narev also acknowledged this recently when he said CBA had to innovate or die. "If we don't innovate successfully, we're toast," Narev told free-market think tank The Centre for Independent Studies in June.