In today’s competitive financial landscape, small business owners represent a highly valuable yet often overlooked customer segment for banks. With their growing demand for enhanced services and comprehensive financial products, these entrepreneurs offer banks a significant opportunity to both retain and attract profitable clients. To remain competitive, banks must prioritize the unique needs of small business customers and offer a holistic suite of products that enhances their experience.
Small business owners are increasingly seeking banks that deliver modern and efficient services. According to a 2023 survey by the Federal Reserve, 80% of small businesses expect their banks to provide streamlined digital services and faster loan processing. For these entrepreneurs, time is money, and they simply can’t afford to wait. Banks that fail to adapt risk losing clients to more agile competitors who understand the value of efficiency in today’s fast-paced business world.
Additionally, a recent survey by the National Federation of Independent Business (NFIB) revealed that 87% of small business owners consider customer service a critical factor when selecting a bank. With nearly half (45%) of these owners using two or more banks for business purposes, the message is clear: forward-thinking financial institutions have an opportunity to increase wallet share by delivering superior service and meeting this segment’s growing expectations.
The evolving demands of small business owners provide banks with a unique chance to stand out by offering a tailored, comprehensive suite of products. The origination system your institution selects can make all the difference in capitalizing on this opportunity.
When assessing which technology partners best suit your institution, it’s important to consider the specific requirements needed to build a winning strategy that appeals to SMB customers.
One key factor in strengthening relationships with small business clients is offering flexibility in lending. This includes supporting both secured and unsecured lending products, along with renewals, refinancing, and modifications. This range of services enables banks to meet the varying needs of small business owners, who often seek diverse lending options to fuel their business growth. Expanding lending capabilities fosters deeper customer engagement and enhances retention.
Beyond lending, deposit origination is equally critical to small business success. By streamlining the process of opening deposit accounts, banks and credit unions can more efficiently scale their small business portfolios. Integrating deposit and lending origination on a unified technology platform provides valuable insights into customer needs, enabling financial institutions to deliver a seamless, end-to-end experience. This ensures small business owners have access to the financial products they need to thrive in a competitive market.
Personalization is increasingly important to small business customers. Adaptive customer journeys that adjust based on each applicant’s risk profile can reduce friction in the application process and optimize underwriting flows, leading to significantly improved performance. This drives engagement and builds satisfaction and loyalty among small business clients who appreciate a tailored approach to their unique needs.
Financial institutions can also benefit from pre-built best practices that enable quick deployment of small business lending products. Real-time adjustments to credit policies and lending criteria ensure systems remain agile and responsive to evolving business needs. The integration of curated, best-in-class data sources optimizes application speed and reduces operational costs. Seamless connections to existing systems and third-party services allow banks to scale their offerings effectively while maintaining cost efficiency.
In today’s digital landscape, security is a top priority for both banks and their small business clients. Leveraging an origination platform with integrated fraud detection, identity verification, and risk management eliminates the need for third-party systems, enhancing security while simplifying operations.
Small business owners are a crucial segment for banks seeking to drive growth and expand their client base. By meeting the growing demand for better customer experiences, comprehensive financial products, and streamlined processes, banks can capture a larger share of this profitable market. Institutions that prioritize these needs will be well-positioned to retain and attract small business clients, ultimately boosting their bottom line and ensuring long-term success.
The future of banking lies in the ability to adapt and innovate—and small business owners are counting on it.
That’s why, at Amount, we recently launched our latest innovation: the SMB Suite. Part of Amount’s flagship unified consumer and SMB digital origination system, this cutting-edge SaaS platform is designed to transform how banks and credit unions manage small business lending and deposit account openings, addressing the critical challenges faced by financial institutions today.
Learn more about our SMB suite here.