New findings reveal small businesses are increasingly relying on multiple financial service providers, as traditional banks struggle to meet evolving needs in key areas like value-added services and integration with digital tools.
NEW YORK, Nov. 20, 2024 /PRNewswire-PRWeb/ -- American Banker, Arizent's leading resource for senior executives in financial services, unveils its Small Business Banking 2024 report. Sponsored by Gusto, this new research assesses both the competitive landscape and the opportunities banks have to deepen relationships with small business clients by focusing on trust and expanding service offerings.
The report examines how financial institutions can advance their relationships with small business clients through four key trust pillars: acting in the business' best interest, safeguarding funds, protecting against fraud and keeping up with customer demands. While banks rate themselves highly on these factors, the findings reveal surprising perception gaps between banks and their small business clients — especially in areas where fintech and digital-first providers are making inroads. These gaps offer a roadmap for banks to reimagine their role as partners to the small business community.
Key insights from the research include:
- Trust as a competitive edge: Although 97% of banks recognize trust as a top retention driver, only around 25% believe they're leading competitors in this area.
- Service gaps: For many small businesses, unmet needs in services like payroll and retirement planning mean turning to multiple providers, leaving an opening for banks to consolidate services and strengthen loyalty.
- Perception gaps: While most small businesses feel secure with their primary bank, some still seek alternative providers to meet their expectations for ease of use and transparency.
"Banks have traditionally held a position of trust with small businesses, but now fintechs and other players are creating unprecedented competition," says Janet King, VP of Research at Arizent. "To retain and grow market share, banks need to address evolving client needs and offer a broader suite of services that support their long-term growth."
For a deeper look into the competitive dynamics in small business banking — and insights on enhancing trust and customer retention — download the full report here.
Research Methodology
The 2024 report is based on surveys conducted by Arizent from July 22 to August 6, 2024, with 300 small business leaders and 120 banking professionals participating. Respondents represent a cross-section of business sizes and banking sectors.
For more information, contact:
Janet King
Vice President, Research
Arizent
janet.king@arizent.com
M 207-807-4806
About American Banker
American Banker is the essential resource for senior executives in banking and financial services, keeping its users updated on vital developments and focusing sharply on their most important concerns — innovation, transformation and disruption; technology, regulation and reform. Financial industry professionals turn to American Banker every day and throughout the day to stay maximally informed — drilling down on complex issues, keeping up with breaking news and downloading research and data.
About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events, and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning, and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News, and Digital Insurance.
About Gusto
Gusto is a modern, online people platform that provides more than 300,000 SMBs with the tools and services they need to hire, pay, insure, and support their teams. Gusto Embedded, a developer platform and support infrastructure, enables software platforms to offer in-app, modern payroll products to their customers as well. With Gusto Embedded, SaaS developers can leverage Gusto's 10+ years of experience as well as our tax filing, payments, and compliance infrastructure in order to build deeply integrated, tailored payroll products that improve the user experience and drive revenue. Learn more at embedded.gusto.com.
Media Contact
Aaron Boscanin, Arizent, 2128038500, aaron.boscanin@arizent.com, www.arizent.com
SOURCE Arizent
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