Small businesses in the U.S. represent 99.9% of all businesses, with 32.5 million operating as of 2021.
The pandemic has led to an increase in self-employment, providing an opportunity for banks to offer digital support. SMBs seek digital banking features that streamline and personalize services, with payment innovations, digital cash management tools, and embedded finance being among the leading solutions they seek.
“Personalization is one of the most sought-after features that SMBs want from financial partners.
– 83% sought convenience from their financial partners– 69% want customer analytics and intelligence
– 65% who are likely to work with a financial advisor to receive the personalized attention they need.”
However, traditional banks are mostly coming up short in providing comprehensive financial advice to SMBs. FIs must provide appropriate digital support for SMBs’ needs to avoid losing them to FinTech or Big Tech.