We often forget that businesses interacting with our banking technology are also consumers accustomed to the sleek digital experiences provided by leading brands and fintechs.
As your customers embrace innovative technologies, their banking expectations will continue to evolve. Traditional banks that recognize and act on this shift can capture significant market opportunities, while others risk losing valuable relationships.
This article explores the essential digital features your institution needs today, the unique opportunity in small business banking, and actionable steps to stay ahead of rapidly changing customer demands.
The New Digital Banking Standard
What was once considered innovative is now table stakes any competitive financial institution. Here’s a few digital tools have become non-negotiable for your customers:
Mobile Check Deposit
The ability to deposit checks through a mobile device has evolved from a convenience to an expectation. Customers now view branch visits for basic transactions as an inconvenience rather than a service.
Banking App
A powerful mobile banking app is essential for small businesses to thrive in today’s digital economy. By providing entrepreneurs with tailored financial tools, banks can be vital partners in driving local economic growth.
Positive Pay + Fraud Prevention Tools
With financial fraud becoming increasingly sophisticated, customers expect proactive security measures. Real-time fraud detection and prevention tools are no longer optional – they’re essential for maintaining trust and protecting assets.
Digital Customer Support
Modern customers expect immediate assistance through digital channels. Whether through chat, email, or in-app support, the ability to resolve issues without phone calls or branch visits has become fundamental to customer satisfaction.
Small Business Opportunity
You may already offer these digital features within consumer banking, but have you extended the same capabilities to your small business customers?
Small businesses, like consumers, expect a seamless digital banking experience with features that simplify their financial management. It doesn’t make strategic or economic sense to offer these tools to consumers and enterprises while neglecting the needs of small and medium-sized businesses (SMBs).
Small business owners represent a crucial segment for banks, and their expectations mirror those of retail customers – but with significantly higher stakes. According to a 2024 study by S&P Global Market Intelligence, the average lifetime value of a small business banking customer is 5.2 times higher than a retail customer, with average deposit balances of $32,800 compared to $6,300 for regular clients.
Small business owners often conduct their personal and family banking with the same institution. A study by BAI found that 70% of small business owners use the same bank for both their business and personal banking needs, highlighting the potential for banks to capture significant consumer deposits by serving the holistic needs of small business customers.
Future-Proofing Your Institution
Maintaining a competitive edge in the current banking environment demands ongoing technological evolution, not just for consumer banking but also for small business services.
Your institution needs to regularly assess its digital capabilities against both current customer expectations and emerging trends. This means:
- Regular technology stack evaluations
- Continuous user experience improvements
- Proactive adoption of emerging banking technologies
- Integration of customer feedback into digital development
By continuously investing in technology that empowers small businesses and prioritizing agile, customer-centric innovation, FIs can foster long-term relationships, drive local economic growth, and shape the future of banking. As customer expectations continue to evolve at an unprecedented pace, embracing this mindset is not just about adapting to change – it’s about securing a competitive edge in an increasingly digital marketplace.
Finli helps banks meet these evolving expectations by expanding digital services through a comprehensive digital platform for small business customers. Our solution integrates seamlessly with your existing banking systems while delivering the modern, efficient experience your business customers demand.
Ready to enhance your bank’s digital capabilities? Contact Finli to learn how we can help you build stronger, more profitable relationships with your small business customers.
