Financial services firms have performed admirably in helping small businesses with loans secured by the federal government in support of the Paycheck Protection Program (PPP) of the CARES Act. So how do banks capitalize on this goodwill and these relationships?
This small business market opportunity is too important to miss. According to FIS research, small businesses comprise an $850 billion global market for banking revenues. Competitive pressure from fintechs and raised expectations require that bankers consider small businesses differently than in the past.
Bankers need to think like small business owners and not as product developers. According to Celent, small businesses think about workflows and banks think about products, with most still offering checking accounts. Technology platform players think about the actions small businesses want to undertake, which brings them much closer to small businesses’ needs.
continue reading »