New survey of SMBs suggest community FIs can win back business checking from megabanks
BRENTWOOD, TN (August 30, 2023) — 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.
About StrategyCorps
For two decades StrategyCorps has worked with financial institutions nationwide to deliver top-performing retail checking analytical and product solutions (and recently small business checking solutions) - the foundation of all banking relationships. Using proprietary analytics to identify primary and non-primary accounts, StrategyCorps then designs and builds checking products with non-traditional banking services that save customers money when they spend it on everyday necessities and protect their important assets. The payoff to clients is boosting primacy and growing deposits and non-interest income, while also standing out from the crowd of basic checking account services.
About Cornerstone Advisors
After more than 20 years in this business, Cornerstone Advisors knows the financial services industry inside and out. We know that when banks and credit unions improve their strategies, technologies, and operations, improved financial performance naturally follows. Because we live by the philosophy that you can’t improve what you don’t measure, we help financial institutions use laser-focused measurement to develop more meaningful business strategies, make smarter technology decisions and strategically reengineer critical processes.
