Here’s the thing: some of your most valuable business accountholders might be hiding in plain sight, right inside your retail accounts.
I’m sharing this because I see this gap from both sides – as a member of the Jack Henry® team and as a small business owner myself – and I know how much is at stake when those two worlds don't align. If you don’t know who these entrepreneurs are, you can’t market to them, which means you miss out on opportunities to help them grow – and grow your revenue along the way.
While you’re in the dark, fintechs like Square are swooping in, cross-selling services, and pulling your accountholders deeper into their ecosystem.
Why Identifying Hidden SMBs Matters in Small Business Banking
The right insights can change everything – and we’re here to deliver them.
Financial institutions can analyze transaction data to uncover which accountholders are accepting card payments, who their vendors are, and even estimate their processing volumes. If you’re using the Banno Digital Platform™, you can tag these sole proprietors and start marketing business solutions that actually fit their needs.
Much of this is automated, so your team doesn't have to do the heavy lifting.
How Tap2Local Enables Embedded Payments for Small Business Banking
Once you know who your business accountholders are, you can start delivering solutions that truly meet their needs: like Tap2Local™.
For financial institutions on the Banno Digital Platform, this embedded card acceptance tool lives right inside your digital banking app, making enrollment simple and frictionless for accountholders with micro and small businesses. And if Banno isn’t your digital banking provider, no problem. Tap2Local can also be offered as a standalone app under your brand, still leveraging core integration for a smooth, streamlined onboarding experience.
Tap2Local complements your current merchant services offering by filling a gap that is often ignored or overlooked and can be enabled with just a few clicks.
Tap2Local is versatile enough to be a micro-business owner’s sole solution for debit and credit card acceptance; alternatively, it can serve as a reliable backup and as a flexible option for special events, mobile payments, or fringe use cases that fall outside of the primary POS setup. Your business accountholders can continue to use their main processing solution to meet more complex needs, but with Tap2Local, they now have an option for specific use cases.
Why Merchant Services Flexibility Matters for Serving SMBs
Most businesses today are “multi-acquired,” meaning they use multiple payment processors for different needs – often tied to software with embedded payments.
That’s where the industry has been heading for the last decade, and if you’re relying on a single merchant services partner, you’re limiting your ability to compete. The problem? Exclusivity clauses in merchant services contracts can feel like handcuffs. Sure, they make sense for your primary partner, but they shouldn’t block you from offering the embedded solutions your accountholders demand. Think of it like healthcare: you have a primary care physician, but sometimes you need a specialist.
Would you want your doctor to forbid you from seeing a cardiologist? Of course not.
The same goes for your business accountholders. They need niche solutions, and you need the flexibility to provide them. So, when your merchant services contract is up for renewal, or you are selecting a new partner, make sure you carve out room for embedded and integrated solutions through your technology partners. Don’t let outdated language keep you from delivering innovation and retaining your most valuable business accountholders.
The goal is simple: offer a comprehensive suite of solutions that meets the diverse needs of your business accountholders.
Next Steps to Identify SMBs and Expand Small Business Banking Growth
Start by identifying your business accountholders. Use data to uncover hidden opportunities.
Then, build a strategy that includes solutions embedded in your digital experience, like Tap2Local. Because if you don’t, fintechs will – and they’re not sharing revenue with you.
Control your digital front door. Serve more business needs. Attract and retain more accountholders.
That’s how you win in a competitive fintech environment.
Contact Jack Henry to learn more about Tap2Local and the Banno Digital Banking Platform.
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