By Missy Rose, Product Manager, Commercial Banking
Many smaller financial institutions feel they can’t compete with the “big four banks” (Bank of America, Citibank, JPMorgan Chase, and Wells Fargo) who, according to an Aite-Novarica study, service 58% of the business banking market. However, over half of these businesses say they would switch financial institutions for a better online banking experience. The big four are winning because business owners feel they are more innovative, they’ve been faster to partner to broaden their portfolios, and they have richer online experiences.
Despite this perception, community and regional financial institutions can win against the big dogs. But what do small businesses expect? First and foremost, you must provide tools and capabilities that address their pain points. Aite-Novarica, in a study commissioned by Apiture, points out that small businesses have high expectations in this area, including:
- Accurate cash flow forecasting
- Efficient collection of receivables
- A full view of the business’s cash position
- A variety of payment options including international payment
- Autonomy to assign roles or set limits for employees
Businesses want actionable advice and insights, and they want this all wrapped in a modern and seamless user experience. With the right digital banking solution, you can position your bank or credit union as a good fit for small businesses who aren’t completely happy with their current solution. But you won’t be able to compete effectively unless you address the feature sets that those businesses expect.
If business banking is important to your institution, make sure you deliver the tools and capabilities you need to attract, retain, and nurture the growth of small business clients. Contact Apiture to learn more about our business banking capabilities.