Financial Institutions Fall Short in Meeting Small Business Banking Needs, Research from Apiture and Aite-Novarica Group Finds

Chris Babcock

Apiture, a leading provider of digital banking solutions, today announced the findings of the company's joint report with Aite-Novarica Group, Delivering Value to Small Businesses, which reveals that nearly half of small businesses (49%) want more sophisticated capabilities than their primary financial institution currently offers. 

The survey of more than 1,000 small businesses in the U.S. identified a high risk of customer attrition for financial institutions that do not deliver solutions designed to meet the unique needs of small businesses. To retain their business, 79% of small businesses say it is important, very important, or required for their bank or credit union to provide solutions tailored to them. More sophisticated mobile banking capabilities, digital tools to help manage cash flow, and more robust reporting to lessen dependence on error-prone spreadsheets are some of the desired features identified by survey respondents.

“Small businesses are neither consumers nor corporate clients, and managing finances is often not their forte,” said report author Christine Barry, head of Banking & Payments, Insights & Advisory, Aite-Novarica Group. “Many financial institutions serve this segment with consumer banking platforms that leave small businesses feeling misunderstood with unmet needs. Those willing to implement the right strategies and make the right technology investments will enjoy new successes in this market.”

The report highlights the steps financial institutions should take to better support small businesses, including: 

• Deliver user-friendly digital experiences: 26% of all small businesses and 32% of millennial- and Gen Z-run organizations would consider switching financial institutions for a more modern and user-friendly digital experience.
• Integrate with accounting systems: 84% of small businesses state tight integration and auto-syncing with accounting systems are required or important to keep their business.
• Leverage fintech partnerships: 53% of small businesses want their banks and credit unions to partner with more fintech companies.

“This research reinforces the need for financial institutions to deliver a business banking solution built with the specific needs of small businesses in mind,” said Chris Babcock, CEO of Apiture. “Banks and credit unions have a tremendous opportunity to better serve this segment by choosing digital banking solutions that offer the features and intuitive experiences small businesses expect, while also integrating with fintech partners to broaden available capabilities.” 

The report is free to download here. ​

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