Win SMBs at the point of spend

Small and mid-sized businesses (SMBs) are the economic heartbeat of the communities credit unions serve. They’re the contractors, retailers, service providers and entrepreneurs driving local growth.

And increasingly, they’re your members.

But while credit unions have expanded into SMB lending, one of the most powerful tools to build and deepen those relationships remains underutilized:

The SMB credit card.

This isn’t just about adding another product. It’s about repositioning the credit union within the financial ecosystem of an SMB, moving from a transactional role to a partner embedded in how that business operates every day.

Over the past few years, more credit union members have become small business owners, gig workers, and entrepreneurs. Credit unions have responded by leaning into SMB loans.

But many are still underleveraging SMB credit cards as a primary relationship driver.

Some credit unions have turned to agent banking programs. But that comes with tradeoffs:

SMB credit cards offer a different path. They allow credit unions to become part of how money moves—not just where it’s stored.

To understand the opportunity, we must start with how small businesses manage their day-to-day operations.

Unlike large enterprises, SMBs blur the lines between personal and business finances. More than half (54%) use both personal and business credit cards to run their operations, especially in early-stage businesses.

On average, SMBs use about 40% of their available credit lines each month, reflecting how central credit is to managing cash flow and day-to-day operations.

At the same time, credit unions are still underrepresented in this segment. Only about 9% of small businesses use a credit union as their primary financial institution, according to the Federal Reserve’s Small Business Credit Survey.

That contrast matters.

It shows that while SMBs rely heavily on credit, they’re often building those relationships elsewhere.

This isn’t a weakness, it’s a signal.

SMBs aren’t looking for rigid structures. They’re looking for financial tools that match how they run their businesses:

They actively manage multiple cards. They use available credit to navigate uncertainty. They make decisions quickly and often.

And in that environment, the primary card becomes the center of gravity.

If you’re not in the spend, you’re not in the relationship. Because when an SMB chooses a top-of-wallet card, they’re choosing more than a payment method. They’re choosing a financial partner.

This is where SMB credit cards fundamentally shift how credit unions engage:

When a credit union powers a business’s primary spending tool, it gains insight into:

That visibility isn’t just informational—it’s actionable, allowing credit unions to move from reactive to proactive:

This is the shift from product provider to embedded partner.

For years, SMB credit was centered on a single question: Can this business get approved?

Today, that question is no longer enough. SMBs aren’t struggling to find credit—they’re struggling to find credit that fits them.

They’re prioritizing:

Approval gets you in the door. Value keeps you there.

Credit’s no longer just a financial tool. It’s part of how SMBs operate and grow.

Nowhere is this shift more visible than in startups and early-stage businesses.

These businesses are often:

They’re not underserved because of lack of demand. They’re underserved because existing products don’t fit how they operate.

So, they adapt, using what is available, piecing together solutions—and building relationships elsewhere. And that creates a critical dynamic:

Whoever serves the business first often keeps it.

Credit unions have a unique opportunity here, not just to extend credit but to establish the primary financial relationship early.

When a credit union becomes part of an SMB’s spending behavior, the relationship expands naturally. What begins as a card relationship evolves into:

At that point, that credit union is no longer competing product-by-product. It’s operating as part of the business’s financial system.

That’s the shift—from product provider to ecosystem participant.

This evolution isn’t just about strategy. It’s about infrastructure.

Legacy platforms were built for static products, but SMBs operate in real time. Their needs shift often, their cash flow fluctuates and their expectations are immediate.

That mismatch creates friction.

Modern platforms improve speed. Next-gen platforms go further—enabling continuous adaptation and value delivery as SMB needs evolve.

Just as important, today’s leading providers deliver true, full-service, end-to-end support—handling program management, compliance and reporting and ongoing operations— allowing credit unions to bring issuing in-house.

The operational burden is lifted, which means credit unions can spend less time managing multiple vendors or building internal expertise and more of it focused on portfolio growth, member relationships, and SMB experience.

At the same time, next-gen platforms make it possible to:

This is no longer about efficiency. It’s about delivering value at speed—without sacrificing control.

The SMB credit landscape is shifting, and with it, opportunity. Credit unions aren’t competing for access to SMBs—they’re competing for relevance in how those businesses operate.

This creates three clear opportunities:

SMBs already expect to be approved. They don’t need more doors—they need better experiences once they walk through them. Deliver credit that:

The primary card isn’t just a product—it’s the entry point. From that position, credit unions can:

Speed matters, but it’s table stakes. Here’s what will really set you apart:

That includes:

SMBs are evolving—and quickly. If credit unions aren’t part of how an SMB spends, they’re increasingly not part of how it grows.

Credit cards aren’t just another product line. They’re the gateway into the financial ecosystem of a business. And with today’s full-service, end-to-end support models, credit unions no longer need deep in-house expertise to participate.

Instead of relying on agent programs or taking on operational complexity, they can bring issuing in-house while partners handle program management and execution—freeing them to focus on growth and cardholder experience.

For credit unions looking to grow relevance, relationships, and revenue, that’s where the real opportunity begins.