27% of Small Businesses in the U.S. Use Alternative Online Lenders
Small businesses rely on business banking to support payment activities, revenue stream, and business growth where timely funding is critical to manage their cash flow situation. Digital online and mobile banking are critical components of small business financing as business owners, Millennial owners in particular, rely on online and mobile banking for many of their banking tasks and manage their business wherever and whenever they want. Small business owners still go to the branch but do so now for more than just transactions. Business owners want financial tools and advice. Digital transformation is shifting communication in every channel toward mobile technology and search online to compare services from alternative financial institutions that may provide faster and more convenient service.
By providing tools to help small businesses organize their finances and acting as a trusted advisor instead of purely a facilitator of business transactions, financial institutions can leverage their understanding of small business owners’ financial needs to improve efficiency and generate new revenue by underwriting more loans. To serve small businesses, they can provide tools and advice for business management and financial management and improve their online and digital banking functionality.
Mercator Advisory Group’s 2017 Small Business Payments and Banking Survey finds that virtually all small businesses in the United States have business accounts at banks or credit unions and take advantage of digital banking online and by mobile. The report, Business Banking Services: Keeping Up with Millennial Owners
, focuses on the types of loans, deposit accounts, services, and capabilities that small businesses use and are interested in obtaining. It explores the relationship that small businesses have with their primary financial institutions and their satisfaction with the FIs’ services.