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?
In order to originate small business loans profitably, banks need to increase cross sales, improve internal systems and/or partner with alternative lenders.
Serving small businesses effectively requires business practices, organizational constructs, and value propositions targeted to this particular market segment.
Small business lending requires a strategy that enables you to clearly define and measure success.
Banks that want to participate in small business lending should understand how asset-based lending differs from uncollateralized consumer lending.
Banks that have been innovative in designing new products for small businesses say they first ascertain the real needs of those customers.
While there is no “secret sauce” to success in banking small business, focusing on several discrete activities and getting them right will move you in that direction.
Banks that truly want to ‘walk the walk’ in small business banking need to do the analytical and structural work crucial for success.