Financial institution digital shortcomings are costing them small business customers

Small and medium-sized businesses (SMBs) play a vital role in national economies, yet FIs often overlook their needs. They find themselves caught between retail consumer services and commercial banking, leading to underinvestment from financial institutions. However, FIs are beginning to enhance their offerings for SMBs by focusing on digital tools.

A recent Bain survey of 20,403 US SMBs highlighted several gaps including:

  1. Many interactions remain primarily physical rather than digital, especially during product or service applications.
  2. Boosting digital engagement requires banks to simplify access and usability of online channels.
  3. Digital failure rates are still too high for certain processes like setting up lines of credit due to complicated procedures lacking cohesive support.

Source: https://www.bain.com/insights/banks-clunky-digital-tools-alienate-many-small-firms-snap-chart/