Raising the Ceiling: How Banks Can Retain Business Customers As They Grow

Small businesses are developing more sophisticated financial needs earlier in their growth, but traditional banking models still force them into a choice between a basic small business digital banking platform or a complex commercial treasury offering. As businesses expand across channels and geographies, add employees and financial users, and adopt more sophisticated operating models, individual needs can quickly outgrow the capabilities available through small business banking—even when the business is not ready for a full commercial environment. That creates an opportunity for banks and credit unions to rethink the traditional divide between the two segments and progressively introduce more sophisticated capabilities as individual needs emerge. 

This Javelin Strategy & Research report examines opportunities to bring traditionally commercial or advanced capabilities down-market across payments, cash management, and digital banking. It also explores how banks and credit unions can deliver those capabilities without introducing unnecessary complexity and retain growing businesses that might otherwise look elsewhere as their needs evolve. 

Key questions discussed in this report:

• In what ways do businesses begin to outgrow traditional small business banking platforms?
• How are technological advancements enabling banks and credit unions to change how they offer digital features and products?
• Which vendors, banks, and neobanks are successfully blurring the lines between small business and commercial?
• What traditionally commercial capabilities can an FI bring down-market to better serve and retain growing businesses?

Companies Mentioned:

Alkami, Apiture, BILL, Bottomline, CSI, FIS, Mercury, MoneyGram, PayPal, PNC Bank, Q2, QuickBooks (Intuit), Regions Bank, Relay, Revolut, Rho, Square (Block), U.S. Bank, Western Union, Wise