Small Business Offers Big Opportunities

Growing deposits is a crucial strategic objective across the financial industry today. Savvy credit unions are eyeing the revenue potential from small- and medium-sized businesses (SMBs) as a key avenue for growth.

But navigating this path can be complex. Credit unions seeking to effectively serve SMBs face a rapidly changing landscape filled with economic uncertainty, intense competition from fintechs, and shifting member demands.

During times of economic strain, the risk of loan losses and increased consumer lending risk becomes more pronounced. And the challenges only increase with well-known fintech competitors in the mix, luring SMBs away with options that didn’t exist a generation ago.

Considering these obstacles, credit unions stand at a pivotal juncture – with a unique opportunity to forge a new path. By embracing strategic tools and approaches, they can bolster support for SMB members. This proactive approach will not only help them navigate challenges but prosper in an ever-changing economic landscape.

Effectively navigating today’s landscape requires a keen understanding of the strategic value of alliances and purpose-built solutions. It's crucial to adopt technology that not only tackles current challenges but also positions the credit union as a leader in meeting the unique needs of SMBs.

The expectations across the business spectrum can vary significantly. So it's essential to target the right markets with the right service offerings.

To enhance their competitive edge in the SMB market, credit unions can prioritize delivering precisely what their members need. This includes equipping them with tools to:

• Proactively battle fraud: SMBs are increasingly worried about digital security threats. Consider implementing a secure channel within digital banking apps for discussing high-risk transactions securely and facilitating approvals in a protected, authenticated environment.

• Customize controls: SMB owners require the ability to manage visibility, transaction permissions, and approval levels across their operations. Empower SMB members to personalize access levels and transaction controls for multiple employees through a secure financial management platform tailored to their needs.

• Streamline financial services:  Leverage technology that supports seamless integrations through an open ecosystem, to offer SMB owners a comprehensive suite of services under one roof, simplifying their financial management.

By taking the initiative now to meet the ongoing needs of SMBs, credit unions can elevate their advantages and position themselves as the trusted financial partner of SMBs well into the future.

For an expanded discussion of this topic, including recent SMB stats and key next steps to grow deposits by expanding your business banking services, read our article, The Not-So-Small Business of Business Banking today.