Banks and credit unions have the funding; small-to-medium sized businesses need it. So how come the two sides remain disconnected?
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.
Analytically-driven marketing support can help banks generate new business loans without having to add new bankers.
Bankers can find profitable growth in serving small business if they are able to overcome their limited view of what small businesses actually need.
To improve their business banking efforts, banks need to segment the market, compile the relevant data, package and price appropriately and focus on customer service.
To truly capitalize on the small business market, institutions need to transform the position of small business banker from lender into all-around business management expert.