When it comes to small business banking, credit unions are sitting on a goldmine—but only scratching the surface.
Today, 96% of small businesses, as defined by the U.S. Small Business Administration, do not bank with credit unions. That’s not a missed opportunity. That’s a gaping hole.
For an industry founded on serving local communities, the fact that small businesses—the heart of those communities—are overwhelmingly turning elsewhere should be a wake-up call. Small businesses aren’t just “nice to have” accounts. They’re economic engines, deposit drivers, loyal members, and lifelong partners when served well.
The good news? Credit unions don’t need to reinvent themselves to win here. They already have the values small businesses want—trust, community, relationship. What’s missing is alignment with modern small business needs: digital tools, speed, tailored product bundles, and messaging that speaks the entrepreneurial language of 2025, not 1995.
Why this matters
Small businesses account for nearly 44% of U.S. economic activity (U.S. SBA, 2019) and create two out of every three net new jobs.
They aren’t a niche—they’re the backbone of our communities. And yet, when it comes to banking, most turn to large national banks or fintechs that promise speed and tools—even when those relationships often feel transactional at best.
For credit unions, ignoring the small business segment isn’t just a missed revenue opportunity—it’s a mission failure. These entrepreneurs are your neighbors, your future board members, your community’s economic heart.
Attracting and serving small businesses isn’t just good business. It’s a reaffirmation of who credit unions are.
Why credit unions haven’t captured SMBs, yet
Despite best intentions, many credit unions unintentionally put up barriers to small business engagement.
- Legacy systems make business account opening slow and tedious.
- Marketing focuses almost exclusively on personal banking, leaving business owners feeling unseen.
- Product offerings feel piecemeal, with separate checking, merchant services, and lending tools instead of cohesive, streamlined solutions.
- Messaging misalignment: Small businesses hear “community” but experience friction, delays, and outdated tech.
Today’s entrepreneurs—especially Gen Z and Millennials—expect both human-centered service and fast, digital experiences.
Credit unions already have the heart. But without modern tools, speed, and tailored solutions, they risk losing the trust of the very members they were designed to serve.
What credit unions can do right now
Winning the small business market doesn’t require becoming a megabank. It requires delivering what small businesses uniquely need:
- Bundled SMB solutions: Checking, merchant services, savings, and lending—offered together, easily accessible, and digitally managed.
- Modern onboarding: Streamline applications, offer same-day business account opening, integrate digital identity verification.
- Values-aligned storytelling: Speak directly to entrepreneurs in your marketing. Celebrate local business success stories. Make your commitment visible, not just implied.
- Strategic fintech partnerships: Close technology gaps without reinventing the wheel. Find partners who can extend your values and capabilities without compromising your brand.
Will we answer the call?
Small businesses are ready for a better banking relationship—one built on trust, community, and real support. Credit unions don’t need to chase big banks’ tactics to win. They need to double down on what makes them different—while embracing the tools that modern business owners expect.
The 96% gap isn’t a reason for despair. It’s the clearest opportunity credit unions have had in decades.
The question is simple: Will we answer the call?
