There is a range of reasons why a large percentage of SMBs are ready to leave their bank. So what should banks be focusing on in order to make those business banking customers stay?
Going beyond traditional marketing, bankers now post blogs and white papers, offer credit coaching and extended hours and pay for leads to gain an edge in pursuing small business customers.
Automated decisioning can make small business lending more profitable for banks – as long as the process includes the human factor as well.
To fully capitalize on the opportunities available with small business customers, banks need to offer products and services that are relevant to their actual needs.
While bankers often criticize alternative lenders for unfair pricing, bottom fishing and irrelevance to the overall loan market, the smart ones should take a closer look.
While banks often struggle to lend to microbusinesses profitably, leveraging their branch sales force effectively can improve the odds.
Success in small business banking requires taking it seriously, paying for performance, focusing on deposits, building partnerships and learning to cross sell.
As commercial banking becomes more important to institutional profitability, bankers need to develop comparative benchmarks in this area similar to those used in retail banking.