SMBs are generally satisfied with their bank – and the larger the SMB, the higher their satisfaction. However, satisfaction does not equate to loyalty; the likelihood to change banks increases dramatically with SMB size.
Bredin’s recent SMB Pulse research reveals that almost one in three SMBs with 100 to 500 employees (midsized businesses, or MBs) are likely to switch banks in the next 12 months. Strikingly, even though they report much lower satisfaction with their bank, less than one in 10 SMBs with fewer than 20 employees (very small businesses, or VSBs) plan to change their banking relationship in the coming year.
Satisfaction and loyalty aside, Bredin’s data also shows that banks have significant cross-sell opportunities for traditional bank offerings, especially among larger SMBs. Credit cards represent the greatest opportunity; one in four VSBs and two in five MBs plan to acquire a new card in the next 12 months. Collectively, most SMBs surveyed plan to apply for some type of bank offering in the next 12 months.
Of those SMBs that plan to apply for financing, just over half will do so at a bank. Alternative lenders are the second-most popular source, followed by credit unions. There is surprisingly little variation by company size.
In addition to standard financial products, many banks have terrific cross-sell opportunities to SMBs for related services, especially financial management offerings. For example, roughly a third of respondents would like to get business credit score information, cash flow forecasting tools and retirement services from their bank. And about a quarter would like accounting/financial management, cash management, insurance, health savings accounts or marketing services from their bank.
Need help understanding and/or engaging your SMB target? Bredin can keep you up to date on evolving SMB needs and challenges through quick-turn, actionable market research. We can also help you develop high-value content and social posts to boost SMB awareness, brand perception, leads, conversion and revenue.