When it comes to serving business banking accountholders, community banks and credit unions have good reason to celebrate: Businesses identifying a community bank or credit union as their primary financial institution are far more satisfied than those using a larger bank, according to a recent Javelin study.
That impressive satisfaction rate – 90% among their business banking accountholders – also leads to a higher share of wallet and decreased likelihood of the business switching to a different institution.
Unfortunately, the satisfaction and retention of existing business accountholders isn’t translating into the ability to attract newer businesses. Of companies formed within the last five years, only 8% identify a community bank or credit union as their primary FI, meaning that 92% chose a larger institution.
With a record-breaking 5.4 million new business applications filed in 2021 alone, this means that community banks and credit unions are missing out on opportunities to acquire, nurture, and grow businesses – and your bottom line.
While the banking needs of a business vary greatly across its lifecycle, there are concrete steps and technologies that banks and credit unions can use to both attract and retain business banking relationships.
Managing these varied business banking relationship needs can seem overwhelming, especially if your bank or credit union is relatively new to the commercial banking market. However, with the right tools and tech stack, it can be easy to attract and serve business accountholders across their life stages.
Despite needing different tools at different times, all businesses need help attaining financial health and stability. You can become their financial hub by focusing on a few key areas:
Whether you have an established business banking strategy or are entering into a relatively new market, the right technology and vendor relationships can make or break your success.
Learn more about how Jack Henry™ helps banks and credit unions attract and grow commercial accountholders.
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