The Banking Needs of Minority-Owned SMBs

Twenty-seven percent of minority-owned businesses indicate a high likelihood of switching banks in the next two years.

Minority-owned businesses are an oft-overlooked banking demographic, but their unique needs, preferences, and operational demands make them a compelling market for banks and financial institutions. Furthermore, these businesses have shown a willingness to switch financial institutions if their banking and payments needs are not met, indicating a potential threat on the horizon that should be addressed as soon as possible.

This report analyzes the banking and payment needs of minority-owned businesses and gives a look into what technology and service capabilities are necessary to meet those needs. It is based on a Q1 2023 Datos Insights survey of 1,006 small businesses generating between US$100,000 and US$20 million in annual revenue, of which 26% are minority-owned.

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

This report mentions PayPal, Venmo, and Zelle.

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