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?
Issues of organizational structure and reporting lines need to be resolved if banks are to get the most out of their small business banking efforts.
Banks have the opportunity to nearly double their business banking profitability by digging deeper into small business sub-segments to find unmet needs.
With small business customers increasingly dissatisfied with bank products and services, bankers should investigate more non-traditional offerings such as generating invoices or hosting Websites.
Small business banking efforts are often typically hampered by organizational failures, lack of innovation and the fear of regulators.
By teaming up with non-bank lending partners, banks can preserve and enhance customer relationships even if they have to deny credit requests.
Miami banker Richard Dailey says community banks focused on small business customers can do well in today’s market.
Converting small business prospects into customers requires listening to customers in the initial interaction, offering loans when appropriate and being clear on your value proposition.