2023 Small Business Banking Trends & Predictions
- Date:November 16, 2022
- Author(s):
- Ian Benton
- Report Details: 9 pages, 3 graphics
- Research Topic(s):
- Digital Banking
- Small Business
- PAID CONTENT
Overview
In 2023, success in serving small businesses in digital channels will hinge on the ability to build the infrastructure for two essential elements of banking: payments and customer service.
FedNow alters the playing field. The anticipated introduction of the Federal Reserve’s FedNow Service theoretically will provide community banks and credit unions with a long-desired counterbalance to the Clearing House’s RTP service owned by the nation’s largest banks. In 2023, that theory must evolve into concrete plans as community FIs face the dual challenge of integrating FedNow into digital banking and overcoming the skepticism of small businesses that don’t yet appreciate the potential benefits of real-time payments.
Momentum builds for a simpler way to make payments. Intelligent payments routing will provide a key piece of an FI’s payments strategy to remove complexity and banking jargon from decisions about payment rails. The biggest beneficiaries will be smaller employers and freelancers.
Small businesses demand more digital customer service options. Consumer expectations have risen fast when it comes to digital customer service—and 2023 will see an acceleration of service options at banks and credit unions. This will put pressure on FIs not only to add options such as contextual help, live chat, chatbots, and virtual assistants but also to integrate them in a fashion that satisfies small businesses that still value connecting with bankers.
Interested In This Report
Related content
Card Controls: A Service in Search of a Strategy
The current adoption of card controls by consumers is disappointing, but several indicators suggest that better positioning of these features by financial institutions would spur m...
How to Supercharge Digital Banking with Payroll Data
Blind spots hinder banks and credit unions from providing reliable financial advice in digital banking. Fintechs such as Argyle, Atomic, Flinks, and Pinwheel are jockeying to provi...
Generation Z: Halfway to Adulthood and Ready to Borrow
Approximately half of Generation Z—those born since 1997—has graduated into adulthood, and that carries strong implications for financial institutions. Gen Zers are moving beyond f...
Make informed decisions in a digital financial world