Financial institutions’ ability to cater to younger generational cohorts, who now account for a significant share of businesses, depends on their ability to meet their digital banking and payments. These businesses expect more from their banking partners; if these needs are left unmet, they are more likely to look elsewhere. More than just an outlier, trends in millennial-run small and midsize businesses indicate trends in other commercial and corporate banking sectors as younger staff move up the career ranks.

This report examines how millennial-run small and midsize businesses are driving shifts in digital banking expectations and payments adoption. It is based primarily on a Q1 2024 Datos Insights online survey of 1,004 U.S.-based small businesses and leverages Datos Insights research of banks’ small-business offerings and strategies and the author’s extensive knowledge of the market.

Clients of Datos Insights’ Commercial Banking & Payments service can download this report.