With fintech firms driving innovative experiences and banks pouring resources into new products, community and regional banks are fighting a challenging battle for the consumer market. This is why small businesses will become the new leading retail banking customer in 2022.
According to a study by Cornerstone Advisors, small business deposit accounts are top priorities for 41 percent of community banks in 2022—almost twice as important as other retail deposit accounts, which were a top priority for only 21 percent of respondents.
However, banks admit their current business account opening process is broken: 40 percent of banks rate their business account opening process as “somewhat or very poor” and 53 percent of banks say their account opening process limits their ability to grow business deposits.
Just as small business relationships grow more valuable to community banks—they also grow more vulnerable. An increasing number of small-business owners want—and expect—the same digital convenience available to consumers. Community banks must address this expectation gap in order to grow and retain key business relationships.
Read Nathaniel Harley’s full article in ABA Banking Journal here.
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