Meeting small business banking needs

The small business banking landscape

There are over 30 million SMBs in the US, making up over 99% of all US businesses across a broad range of industries, geographies, and owner demographics. SMBs are an evolving segment, but current banking offerings and service levels are often below expectations. For incumbents, challenger banks, and non-banks, there are key opportunities: to better serve existing and new customers; to deepen relationships and cross-sell products; and to more holistically serve businesses and owners as they grow and manage risk.

We recently surveyed 500+ small and micro businesses across the US with annual revenues less than $5M. We sought to understand perspectives from key SMB founders and business leaders around their current experiences with primary and supporting banking providers, and to learn more about their unmet customer needs. The survey covers multiple small business entity types, owners, industries, and geographies, and focuses on banking behaviors, needs, relationships, digital banking preferences, and switching propensity.

In this report, we provide key insights based on our primary market research, alongside our own experience designing successful small business banking propositions and underlying next-generation technology platforms.