A new study commissioned by community banking services firm StrategyCorps has taken the pulse of small and medium-sized businesses from across the country (annual revenue from $100,000 - $100 million) with the help of financial services consulting firm Cornerstone Advisors.
The results reveal, among other things, that while megabanks and large regional banks have gained influence in this important sector, community financial institutions (FIs) still have what it takes to win these customers back - if they are willing to upgrade their business checking accounts to reflect the needs of today’s business owners.
“The results of the survey show that once again, David can defeat Goliath,” says StrategyCorps Partner Dave DeFazio. “But just as that ancient battle took innovative thinking to move beyond fighting toe to toe with Goliath, so it is with attracting businesses to checking accounts for community FIs.”
Some of the surprises within the report that are good news for community FIs:
- Many SMBs are open to new banking relationships. Overall, two-thirds of SMBs are somewhat or very likely to look for new banking relationships in the next 12 months. Among SMBs with annual revenue between $10 million and $100 million, that percentage rises to 77%.
- Many SMBs are looking for better business checking account features. When asked why they might consider a new banking relationship, nearly 40% indicated they wanted to get better business checking account product features and capabilities.
- SMBs are increasingly open to borrowing from sources other than their primary checking account provider. Roughly 80% of SMBs will consider their primary business checking account provider for their borrowing needs over the next two years but 52% will consider another bank or credit union for loans—up from 42% in a survey Cornerstone Advisors conducted in early 2020
The free 24-page report contains similar interesting insights throughout. And the overall assessment is very encouraging for community FIs that are willing to revitalize their business checking accounts and deliver the services that SMBs are craving.
To receive a free copy, download at https://strategycorps.com/reinventing-business-checking-PR or contact Dave DeFazio at 615-498-5220 or dave.defazio@strategycorps.com.