Bredin recently surveyed business banking leaders to learn what’s working now in small business acquisition, and their strengths and challenges in the small business segment.
Four in five respondents say they consider the small business segment to be extremely or very important compared with retail, commercial and wealth management lines of business. In most banks, the value of the segment has increased in the past few years.
More than 40% of bank respondents cite increasing segment market share as a primary objective. The most effective tactics for small business acquisition include:
- Quick loan approvals
- Direct sales
The challenges to expanding a small business base within a bank include:
- New customer acquisition
- Customer engagement and retention
- Keeping up with financial technology
- Economic uncertainty, inflation and rising interest rates
What is the SMB business outlook? Do they think a recession is coming? And, how happy are they with their bank and what financial products do they plan to acquire in the next 12 months?
To find out, join us next Thursday, Nov. 3 at 1 p.m. EST for Small Business Outlook and Bank Preferences.
Bankers told us their key strengths in the small business segment are:
- Access through the branch network
- Loan approval process/time
Conversely, their key weaknesses in the segment include:
- Branch network
Bank leaders also revealed that knowing more about the following aspects of small businesses would help them to attract and build segment relationships:
- Drivers of choice of a bank
- How segmentation can enhance customer relationships
- Top tactics to incentivize borrowers to use online application portals
- How often prospects and customers want to be contacted
- How to become an integral partner to a small business
- Whether small businesses are willing to pay more for a high touch advisory relationship
Need help understanding and/or engaging SMBs? Bredin can help you understand SMB needs and preferences quick-turn, actionable market research. We can also help you develop high value content and social media posts to boost SMB awareness, brand perception, leads, conversion and revenue.