In early April 2023, Monit conducted its quarterly pulse survey of over 300 small business owners from across the US. The survey focused on monitoring shifts in owners' sentiment about the economy and operating environment, changes in business priorities, and tracking emerging needs. The results of this survey can be particularly useful for business bankers, as they provide insights that can help them make informed decisions about how to support small businesses and better tailor their solution to meet the evolving needs of their clients.

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Key Highlights:

• SMB owners continue to be optimistic with 68% reporting the economy/operating environment improved vs. prior quarter. Further, 58% of owners reported increased customer demand over the same time period
• 65.4% of owners reported an increased appetite to invest in growth, up 15.4% since Q2 ’22.  Funding growth with cash-on-hand remained the most popular option, selected by 70% of respondents
• 83% of Business owners have focused on receivables management in response to changes in their operating environment
• 90% of owners reported moving deposits around in response to recent turbulence in the banking industry.  39% moved deposits to an account at a different bank while 38% reported setting up and funding a new account.
• SMBs continue to manage their cash well as Cash Coverage and median cash on hand remains stable, and above pre-pandemic levels

Actionable Considerations for Bankers:

• The fallout from recent bank runs has SMB owners rethinking where they keep their deposits.  Bankers need to understand which deposits are at risk and how to best defend them.
• With greater “money in motion” banks will struggle to provide adequate advice (and risk analysis) to owners.  Aggregation capabilities become even more crucial to see total financial health of SMBs.
• SMB owners’ focus on improving efficiencies to combat rising prices – and particularly receivables management is a significant value-add banks can offer.
• Despite the news headlines, SMB owners showed an increased appetite for growth.  Advice/guidance on how to navigate through foggy horizons is paramount.

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To get a copy of the full report, please contact our Chief Customer Officer at ryan@monitapp.io

The Q4 ‘22 survey was conducted between April 4^th and 5^th 2023 and queried owners' perspectives of changes vs. the prior quarter. The survey included US based businesses, including small businesses with between $100K-10 million in revenues and mid-sized businesses between $10-100 million in revenues..

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