Small businesses are booming in the U.S., with approximately 32 million small-to-medium (SMB) businesses1 representing around 150 billion dollars in annual revenue for the banking industry.2 These SMB owners are hungry for capital, useful financial products, and digital services to help them run and grow their businesses more efficiently.3
To help financial institutions better serve this market, we recently hosted the webinar Simplified Solutions for SMBs: How Your FI Can Grow Relationships by Offering Streamlined Solutions. During the webinar, we conducted a survey where we asked institutions and individuals in attendance about their goals and challenges with SMB customers, and the results were noteworthy. Here are our key findings:
SMB clients are generally not consumer or retail clients (yet)
Only 15% of respondents reported that 50% or more of their SMB clients were also current consumer or retail clients. 42% percent said 30-50% of their SMB clients were also consumer/retail clients, and 42% said 15-30% of their SMB clients were consumer/retail clients.
Financial institutions want to do more business with their SMB clients
While most SMB customers may not be consumer or retail clients now, institutions are looking to change that. Nearly half of the respondents, 40%, said they’d like to convert at least half of their SMB clients to consumer or retail clients. Further, 20% said they’d like to convert more than half of their SMB clients to consumer or retail clients, and another 20% said any pickup would be welcomed.
Many FIs are working to serve SMBs better
30% of respondents were actively developing or integrating new products and services to better serve SMBs. And 30% of respondents said they were gathering insight about better serving this segment.
Roadblocks to offering tailored products and services to SMBs
33% of respondents said implementation complexity was a roadblock to offering more tailored products or services to SMBs. 15% cited cost vs. ROI as a roadblock. 7% said time to market was an issue, and 46% said all of the above were challenges.
Overcoming roadblocks with Envestnet® | Yodlee® SMB Solutions
While financial institutions and credit unions are highly motivated to serve SMBs, our survey confirms that there are a number of hurdles they need to overcome. At Envestnet | Yodlee, we have designed our SMB Solutions to help organizations overcome these challenges to connect more deeply with SMBs.
Our SMB Solutions turn data into action in a single platform to help your organization:
- Better meet SMB demands promptly with tailored insights and analytics
- Help SMBs be more efficient, access credit, and monitor cash flow
- Tap into cross-sell opportunities to boost revenue
- Explore new data sources to enhance credit and risk management
- Help facilitate, simplify, and streamline borrowing experiences
Envestnet | Yodlee SMB Solutions can be white-labeled as an extension of your company’s brand. We also offer enhancements, such as our cash flow widget, that can be embedded into an existing digital experience.
If your institution is interested in implementing our SMB Solutions, know that our Professional Services team will work with your organization to ensure the integration goes smoothly, is on time, on budget, and configured to your organization’s exact specifications. Through doing so, your institution will begin experiencing the benefits of connecting more closely with SMBs and their owners.
Ready to tap into the $150 Billion SMB opportunity? Explore our SMB Solutions by watching the webinar: Simplified Solutions for SMBs: How Your FI Can Grow Relationships by Offering Streamlined Solutions, and reach out to our team for a personal demo.
