Small business banking is #trending

It’s time to rethink how you address the small business banking market

The small business banking experience is currently fragmented and typically requires in-person interactions, even for simple banking needs. This presents an opportunity for banks to overhaul their processes and capitalize on a pivotal moment to acquire new customers, all while staying compliant with regulations. As things stand, there are barriers to small businesses in acquiring financial services online.

1. Most traditional banks have limited online capabilities, with digital applications serving primarily as customer inquiry and initial app intakes, requiring banker follow-ups.
2. A high number of traditional banks require an in-person consultation to open small and medium banking (SMB) deposit accounts and credit cards.
3. Many banks that have enabled online account opening for small business customers have not invested beyond the account opening experience.
4. The number of physical bank branches is on a steep decline. By 2034, there are projected to be less than 16,000 branches in the United States.

In today’s marketplace, a realistic experience for a small business might play out like Scenario 1 below.

Trends driving the future of small business banking

Addressing the realities painted above in Scenario 1 requires a massive overhaul of the current small business banking market. Banks need to be in line with the digital speed of other experiences small business entrepreneurs are encountering, and they need to build a digital experience that removes the need to meet in branch. An effective customer experience for small and medium-sized enterprises (SMEs) requires instant time to decision, experiences driven by the SME growth journey, niche offerings, and more.

In Scenario 2, we see the future of small business banking: A seamless digital experience that takes days instead of weeks, done entirely from home.

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