Serving small business accountholders is a hot topic, and for good reason.
Even with economic headwinds, more than 5 million new business applications were filed in the U.S. in 2022. The launch of so many new ventures – along with the opportunity to serve the other 33.2 million small businesses operating in the U.S. – creates a wealth of opportunity for banks and credit unions. And yet, only 18% of small businesses “completely agree” that traditional financial institutions are providing the services they need to effectively run the financial side of their business.
Fortunately, advances in digital technology mean you’re better positioned than ever before to provide small business tools and serve their banking needs.
With 95% of small business owners considering themselves heavy fintech users for both business and personal needs, it’s easier than ever to encourage adoption. Here are five things small businesses want that will help you earn and retain their business:
Digital invoicing and payment acceptance tools. For many years, digital invoicing and payment acceptance tools were only available through third-party fintechs or merchant services relationships. As a result, many small businesses aren’t aware that digital invoicing can be included in their existing digital banking relationship. So they go elsewhere for this essential service.
Beyond creating additional financial fragmentation, this practice creates a direct hit to your balance sheet. According to the 2022 Autobooks Small Business Data Report, only $1 of every $8 collected through a third-party like PayPal, Square, or Venmo to collect payments ever makes its way back to the primary financial institution.
With 92% of U.S. small businesses interested in using fintech tools for billing, invoicing, and payment acceptance, it’s a fantastic time to embed digital invoicing and payment acceptance tools right into the digital banking experience.
For those already using the Banno Digital Platform™, it’s simple: Autobooks has already built integrations that provide embedded invoicing and payment acceptance. You can enable them with the flip of a switch. If that’s not the right fit for your institution, it’s easy to embed an alternative fintech partner using open APIs and a toolkit integration. Either way, your small business accountholders will appreciate the ability to collect on their accounts receivable and manage their cash flow more effectively.
It’s an expensive problem, with BEC losses over $2.7 billion in 2022 alone according to the FBI’s Internet Crime Report. Fortunately, it’s one you can help your business accountholders avoid when you provide a secure channel for financial conversations within the digital banking app.
Rather than using email to discuss and approve higher-dollar and higher-risk transactions like wires or international ACH, you can offer businesses a tool like Conversations for Business. This gives them the ability to securely discuss and approve transactions behind a fully authenticated login within the digital banking experience.
Employees can securely message the owner or another transaction approver, pull non-signers like a bookkeeper or attorney into a conversation, or even add a bank or credit union employee into the chat to answer questions.
The ability to conduct business and converse about higher-risk transactions through a secure portal – and from any device or location – ensures your business accountholders can take care of business quickly, easily, and safely. They’ll appreciate how you protect them from the threat of business email compromise while making it easy to handle their financial transactions.
Connect with your digital banking technology provider and learn about their plans to eliminate screen scraping, and how they will empower your accountholders with visibility into their financial data sharing relationships. Then take it a step further and consider offering financial data aggregation within your digital banking experience.
Rather than sending your business accountholders to third parties to gain the full view they need to run their businesses effectively, you can become the hub and a one-stop-shop where they can easily view the status of their financial lives.
Small business owners – as always – have a lot on their plates and are perpetually seeking solutions that create agility and financial resilience. With the right technology at your fingertips, you can deliver the small business tools today’s entrepreneurs want and need to operate in today’s fast-moving, complex business environment.
As a result, you’ll attract and retain businesses that can grow over time, bringing vibrancy to your community and strength to your institution’s bottom line.
Learn more about how Jack Henry™ can help you serve your small business accountholders.
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