The fight to serve young businesses has been dominated by giant banks. Community banks and credit unions serve only 8% of small businesses, many of which are young and quite small. But this can change. Digital banking offerings that serve the needs of these businesses, combined with a community presence, can help establish long-term relationships with these businesses.
Smaller banks need to focus on tools small businesses need, such as cash flow management and invoicing, as well as their community roots to entice and retain young businesses at a critical stage of their early development. Once a banking relationship is established, businesses are less likely to switch, so there is an opportunity for community banks to find lasting customers.
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