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.



Book a Meeting with the Author

Related content

September 30, 2026
Fintechs and Neobanks Upend the Business Banking Landscape with Charter Applications and Bank Acquisitions

A wave of bank acquisitions and charter applications is upending the competitive landscape in small business banking. In September 2026 alone, Revolut received conditional approval...

August 31, 2026
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 small business and...

July 31, 2026
The Small Business Cross-Border Payments Opportunity

Cross-border payments are not just the domain of multinational corporations. Small businesses routinely buy inventory overseas, pay international contractors and service vendors, s...

Make informed decisions in a digital financial world

Let's Connect