Small businesses are the backbone of our economy - the last several years have proven that adage to be abundantly clear. In fact, small businesses continue to be the greatest source of new jobs and make up 99.7% of all employer firms in the United States. With such a crucial role in our society, it is important that we bankers do everything we can to support and empower these businesses to thrive.
To underscore the importance of banks supporting their SMB customers, consider the following data points:
So, it’s no wonder that an EVP at a top 10 bank recently confided that "2023 is the year of SMB."
One way that bank (and others!) are meeting SMBs' needs is by providing them with the tools they need to succeed. One theme that has become increasingly important in recent years is cashflow forecasting and digital advisory tools. These tools allow businesses to better understand and manage their financial health, which is especially important in today's uncertain economic climate. Many of the mega-banks (like Bank of America and US Bank) are already offering such tools.
Further, according to a recent study by the National Small Business Association, nearly half of small businesses struggle with cash flow management. This can lead to financial stress and, in some cases, even business failure. By providing small businesses with access to digital cashflow forecasting and advisory tools, banks can not only support the success of these businesses, but also benefit from the increased loyalty and satisfaction of their customers.
Offering digital cashflow forecasting and advisory tools to small business customers is not only good for the businesses themselves, but also for the banks that provide these services. It is a win-win situation that can help to strengthen our economy and support the success of small businesses.
As McKinsey recently noted, “Many banks have not prioritized SMBs — forsaking the vast potential value and leaving many SMBs feeling that their needs are ignored.” If you want to win in the SMB space and join the growing set of banks offering these critical tools to business owners, please schedule a demo with the Monit team here.
Our flexible partnership options can support a quick, bank-branded deployment or a fully embedded bank digital experience. Please reach out to discuss the best approach for your bank.