FIs are solving yesterday’s SMB problems while their customers grapple with today’s operational crises. Traditional banking relationships built on branch proximity and lending rates are giving way to a more complex ecosystem where operational efficiency, fraud prevention, and digital integration determine provider selection. Small and midsize businesses (SMBs) want more, and they are willing to find alternative providers to help them operate their businesses, be they alternative banks or fintech competitors.
This report examines the current state of SMB banking priorities and pain points through the lens of Datos Insights’ comprehensive survey data of 1,004 U.S.-based small businesses, which finds substantial gaps between SMB needs and current FI offerings, particularly in areas of payment modernization, fraud prevention, and workflow integration. These gaps present challenges for incumbent providers and long-term opportunities for those willing to adapt to them.
Clients of Datos Insights’ Commercial Banking & Payments service can download this report.
This report mentions PayPal, Venmo, and Zelle.
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