While the definition of small business lending may be elastic, its strategic importance to banks is paramount – nearly 70% of respondents identify small business lending as a priority for their institution in American Banker's Small Business Banking 2023 research.
Our report highlights products banks are offering to small businesses as well as some that are not widely on offer but perhaps should be. We provide a window into technology investments and the growth strategies being used to grow small business portfolios. Findings include:
- A majority of bank respondents consider small business banking a priority, with the largest banks ($50 billion or more in assets) indicating the strongest focus.
- Banks are optimistic about the small business sector with three-fourths forecasting moderate to aggressive growth in small business banking over the next two years.
- Most bank respondents (over 80%) cite small business banking as a meaningful or central component of their ongoing digital transformation efforts.
Why read this report?
In this report we cover why small business customers are big business for banks. In particular, the report highlights how institutions can better understand the marketplace so they can differentiate themselves, improve service levels and ultimately drive more revenue.