Community banks are losing SMB primary-relationship share faster than any other institution type. Datos Insights’ SMB Banking Surveys show share falling from 10.4% in 2023 to 5.1% in 2026, even though community bank clients are the most committed in the market: 21% say they probably or definitely will switch, versus 30% at the Big 4 banks. On the current trajectory, share could fall below 3% by the end of the decade.
Loyalty and growth are different problems, and community banks have solved only the first. Datos Insights recommends funding acquisition as deliberately as retention, with its own budget line, a quarterly target for new primary relationships, and a named owner.
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