What small-business customers want from their banks

There's a disconnect between what small businesses need from their banks and what banks are providing. That gulf could be an opportunity for bankers who understand how to serve these customers, new research from American Banker shows.

Although most small businesses surveyed are profitable, one in four feels cash-constrained. Eighty percent of respondents said they trust their bank. So it makes sense that they would be amenable to bankers' overtures about new ways to help.

How do small businesses do their banking?

Among those that used retail banks as their primary provider, 76% used a national or global bank, 19% a regional bank and 4% a community bank. Small businesses said they had worked with their primary institution for 6.8 years, on average. More than half — 52% — said they also used consumer fintechs in addition to their primary bank.
How do small businesses do their banking?

How good a job are small-business bankers doing?

Bankers think they're serving small businesses well, but their customers don't have as high an opinion of their banks.
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Would small businesses trust their banks to offer more services?

They're more willing to buy services that are closer to traditional banking, including accounts payable and receivable or payroll, but less likely to want services that aren't within a bank's usual purview, like discounts on outside goods.
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What makes a small business trust a bank?

Small businesspeople have specifi c reasons why they feel their bank is trustworthy, including helping fight fraud, rapid check clearing and happy bank employees.
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