Stealing Small Business Customers from the Mega-Banks

by Steve Topper

In their quest to generate more revenue many community banks are doubling-down on their efforts at reaching out to the myriad of small businesses in their branch market areas.

Since we can assume that almost 100% of ongoing businesses in your market areas are already banking with someone, the question becomes one of “Is it possible to convince some of these small businesses to switch banks?”

The secondary question is “Will they close their accounts at the mega-bank down the street and bring them to my smaller community bank?”

After all, the vast majority of these small businesses are most likely banking with one of the four mega-banks or a large regional bank – not with your fellow community bankers.

By the way, you can probably count on your community bank competitors to work harder to save a small business account than would the larger, more impersonal mega-bank.

Of course, there is another option – a much tougher option.

Is it possible to develop a marketing outreach program directed at small businesses during the planning and incubation stages?

In other words, a marketing message that goes something like this:  “Come to us first if you’re planning on going into business for yourself.  ACTON Bank is the bank for new businesses.”  You get the point.

This would be the path least traveled.

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