Overview

While most businesses have only one financial relationship and tend to stay loyal to their bank, a subset of small businesses (31%) spread their accounts, products, and financial services across multiple institutions. Though these businesses tend to be more fickle, they also tend to be the best customers, with the highest digital engagement and profitability potential for the bank. This report examines how FIs looking to earn a greater share of financial products and encourage consolidation at the primary FI can design digital banking services and marketing to best target their most attractive small business customers.

Key questions discussed in this report:
  • How many banking relationships do small businesses have?
  • What does it mean to a “primary” FI?
  • Which products tend to be sought at “secondary” FIs?
  • What should the role of the relationship manager be in deepening small business banking relationships among the highest-value clients?
  • What digital tools can banks offer to encourage greater engagement and relationship depth?

Methodology

The small business data in this report are based on information collected in a random-sample panel of 1,000 small businesses and microbusinesses in a March 2017 online survey. Javelin defines microbusinesses as those with annual revenue between $100,000 and $1 million and small businesses as those with revenue between $1 million and $10 million.


The consumer data in this report are based on information collected in a random-sample panel of 10,585 consumers in a May 2017 online survey.



Learn More About This Report & Javelin

Related content

February 18, 2025
Data Snapshot: The Nature of Work Is Changing

In these post-pandemic times, 38% of American professionals now engage in freelance work and must manage their complex financial lives with digital features and tools that are bett...

January 30, 2025
1033 in Small Business Banking: Dig In or Go on the Offensive?

Banks with small-business customers face a choice as they comply with the consumer data-sharing dictates of Section 1033: check the regulatory box or go big, treating Section 1033 ...

November 07, 2024
2025 Small Business Banking Trends

It would be impossible to discuss the major trends in business banking for 2025 without highlighting cash-flow tools, generative AI, and real-time payments. Javelin Strategy & Rese...

Make informed decisions in a digital financial world

Let's Connect