The accelerating disintermediation of small-business lending is resulting in the loss of income from interest and noncredit sources. As fintech competitors capture an expanding share of the lending market through superior digital experiences and streamlined processes, they establish beachheads for broader relationship fragmentation that compromises total relationship value through deposit stability, payments revenue, and additional cash management services.
This report analyzes patterns of borrowing disintermediation, profiles the customers most vulnerable to fintech migration, and provides actionable strategies for banks to defend and recapture small-to-midsize business (SMB) relationships. It is based on extensive conversations with commercial lending institutions and fintech vendors, as well as a Q1 2025 Datos Insights survey of 1,004 U.S. SMBs with annual recurring revenue between US$100,000 and US$20 million.
Clients of Datos Insights’ Commercial Banking & Payments service can download this report.
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