October 15, 2018
By Corey Gross, CEO, Sensibill (an FIS partner)
A robust banking industry needs a thriving small business community, and vice versa. In the U.S. today, sole proprietorships and micro-businesses make up 92% of all businesses in the private sector. Still, this group remains underserved by their financial services providers. In 10 years, self-employment is expected to outpace salaried work, meaning that most individuals will behave like “micro-business” owners, emphasizing the importance of addressing small-scale business needs. This expands the small business banking opportunity for banks, but also raises the bar.
To understand what this means for banks, Sensibill commissioned a study with Barlow Research Associates to understand the segment’s pain points, their relationship with their bank, and what they expect from their providers. Barlow’s research revealed that:
Historically, community and regional banks have been the trusted provider of choice for small businesses, and for this reason, they are ideally positioned to prioritize the micro-business segment––and capture the rewards. The success of this strategy hinges on community and regional banks reimagining their role from financial services providers to business partners.
Jumpstart your day in a matter of seconds with quick snapshots of industry trends and leading perspectives delivered straight to you. Sign up for RISE here.