Traditionally, the narrative around small business banking has suggested that fintechs are winning. The perception is that they’re faster to market, easier to use, and more focused on solving specific business problems. As a result, small and mid-sized businesses (SMBs) have steadily expanded their use of fintech tools for payments, invoicing, expense management, and cash flow visibility.
But research from Datos tells a more encouraging story for credit unions. In short: SMBs may be using fintechs. But they don’t actually want to.
Fintech adoption is now firmly established. According to a Datos Insights survey in Q1 2026, 71% of SMBs use at least one fintech provider for financial services. At first glance, that statistic appears to reinforce the idea that fintechs have taken the lead. However, 85% percent of those same SMBs say they would prefer to access those capabilities through their primary financial institution instead. This is the paradox credit unions need to understand. Fintechs are winning usage—but not preference.
SMBs needed faster ways to move money, better tools to manage receivables, and more visibility into their financial position. Fintechs stepped in to fill those gaps, delivering targeted solutions that addressed real operational challenges. Meanwhile, many financial institutions focused on improving digital access rather than rethinking how businesses actually operate. While enhancements were made, they often fell short of delivering meaningful workflow improvements.
The result is what many SMBs experience today: a fragmented financial environment where no single provider meets all of their needs. For example, a business might rely on its credit union for deposits, while using separate platforms for invoicing, payments, and expense tracking. Over time, this patchwork approach becomes harder to manage.
As SMBs adopt more tools, they also take on more complexity. Data lives in multiple systems. Reconciliation becomes more manual. Visibility into cash flow becomes less clear, not more. Costs increase as subscription-based services stack up. Unsurprisingly, SMBs are starting to push back. A growing majority now say that consolidating the number of financial tools they use is a priority, with many describing it as a significant operational challenge.
The shift is clear: SMBs aren’t just looking for better point solutions, they’re looking for fewer, more integrated solutions that simplify how their business runs.
SMBs still want the speed, flexibility, and functionality they found in fintech solutions. But they no longer want to manage those capabilities across multiple disconnected platforms. Instead, they’re looking for a more unified experience that brings together payments, receivables, and financial visibility in a way that reflects how their business operates day to day.
Real-time insight and seamless money movement are now baseline expectations. SMBs also want to see where their money is in real time and for payments to move without delay or uncertainty. Processes like reconciliation and reporting should happen with minimal manual effort.
While SMBs are often perceived as highly price-sensitive, the data suggests many are willing to pay more for solutions that save time, accelerate payments, and eliminate inefficiencies.
For credit unions, this moment presents a clear opportunity. Unlike fintech providers, credit unions already hold the primary relationship with SMBs. They are established, trusted, and sit at the center of the SMB’s financial life.
What’s been missing is the ability to extend that relationship into the operational tools SMBs rely on every day. Payments, in particular, have become a defining factor. SMBs consistently point to payment capabilities—speed, automation, and flexibility—as key reasons they would consider switching financial institutions. Increasingly, SMBs expect their financial institution to function as a platform—one that supports how they run their business, not just where they store their money.
SMBs haven’t moved on from their financial institutions. They’ve simply adapted to what was available. Now, they’re signaling a clear readiness for something better. The question is whether credit unions are ready to meet them there.
To learn how credit unions can create a more unified experience for SMB members, visit Alacriti’s credit union solutions page. See how a modern approach can help simplify operations and strengthen relationships.
