Redefining “Community”: How Small Banks and Credit Unions Can Compete and Thrive in Business Banking
- Date:September 19, 2022
- Author(s):
- Ian Benton
- Gregory Magana
- Report Details: 19 pages, 5 graphics
- Research Topic(s):
- Small Business
- PAID CONTENT
Overview
Making gains in business banking is a daunting proposition for community banks and credit unions, which despite excellent retention and loyalty struggle to acquire new business customers. The 25 biggest banks in the United States account for the vast majority—84%—of primary banking relationships with small and medium-sized businesses, a share that’s especially growing among the four biggest banking providers.
However, smaller institutions can counter the competitive threat from large banks and fintechs by playing on their core strengths — local and regional market knowledge, industry expertise, product specialization, and personalized service, to name a few. This report details how community FIs can develop online and mobile banking tools that allow them to express those competitive advantages digitally.
Key questions discussed in this report:
- What is the competitive threat that community banks and credit unions face in the business banking market?
- What are the challenges community FIs face in building their client bases and what are their strengths?
- What steps can community FIs take to better express their core strengths -- through digital banking and elsewhere?
Interested In This Report
Related content
Are Small Businesses Ready for Instant Payments? It's Complicated.
FedNow’s recent launch is a landmark development in the push toward a ubiquitous and affordable instant payments regime in the United States. For small businesses, instant payments...
The Dual Role of Digital in Retaining Small-Business Deposits
Small-business deposits are in flux at traditional FIs, with a quarter of those businesses moving deposits to other institutions in the past year. Often, the move is to another ban...
Business Financial Health: A Foundation for Upgrading Digital Banking
Maintaining business financial health is a challenge. Most entrepreneurs are not financial professionals, nor are they fluent in the language of banking, payments, and financial an...
Make informed decisions in a digital financial world