For banks seeking growth among small businesses, additional segmentation through addressing the needs of microbusinesses presents a considerable opportunity. Over 16 million new business applications were filed between 2021 and 2024, and business births continued to outweigh deaths in that period. The microbusiness segment offers substantial client acquisition potential for FIs willing to serve this market effectively.
This report examines the microbusinesses segment of the small and midsize business banking market. It analyzes where these firms currently conduct their banking, their unmet needs, and opportunities for financial institutions to serve this segment better. It is based on extensive conversations with FIs and financial services vendors, as well as Datos Insights surveys from Q1 2025 and Q1 2026.
Clients of Datos Insights’ Commercial Banking & Payments service can download this report.
This report mentions Freshbooks, PayPal, QuickBooks, Square, Stripe, and Xero.
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