One of the biggest ways FinTech firms have been able to gain a competitive edge on traditional banks, for small business (SMB) customers, is through relationship-building.
Banks are shuttering their physical branch locations at the fastest pace in years, according to The Wall Street Journal (WSJ). Small business financial services (FinServ) experts have warned that a lack of access to human bank representatives is harming SMB owners’ ability to not only obtain the bank products they need, but the advisory services they crave from their financial service providers. The implications of this can be significant.
“For business owners, the absence of branches and the face-to-face relationships that go with them can complicate everything, from getting financing to depositing earnings to making payroll, and local economies can suffer as a result,” said Fortune in August, covering news that Chaseannounced plans to open 400 more bank branches to support SMBs affected by industry-wide branch closures.
While exact data is sparse, credit unions (CUs) are often lumped into commentary about branch closures and their impact on small businesses. However, Trevor Dryer, co-founder and recently former CEO of small business lending technology firm Mirador, said that unlike large banks, credit unions often offer a more localized and personalized approach to servicing their small businesses.
continue reading »