Small Business-Banking Relationships Are Challenged by Rising Expectations, According to New CI&T Report

(Re)open for Business, a new report exploring how banks can best support small businesses in a post-pandemic world, was released today by CI&T, a leader in driving digital transformation for global brands. While the pandemic triggered a digital transformation in financial services, the report found that small businesses still want and need banking relationships.

This report examined survey responses, focus groups, and interviews with 500+ small and medium-sized businesses in the United States with an annual turnover of up to $25 million. The report revealed two main themes for future small business-banking relationships, which includes:

Redefining value: 

While 84% of small businesses reported having "very much" or some degree of confidence in their bank, focus groups and interviews found that while there is trust in banks, expectations are increasing, as is frustration and uncertainty about complicated and opaque fee structures.

Banks are strategically positioned as the go-to partner with small businesses looking for effective day-to-day operations management services such as payroll, expense management, and tax advice. Banks do not choose to include these as direct offerings, but serving as a connector may help build a stronger customer relationship. The winners will be the banks that can meet the needs of these small businesses in ways apart from traditional deposit and credit services.

Digital as the primary way of doing business:

Due to the complexity of their work, small business customers understand the ease and cost-saving advantages of technology, but they still prefer personal interaction and relationships.

When it comes to technologies and platforms built to make small businesses' lives easier, they have options. This provides an ideal opportunity for trustworthy, dependable partners such as banks to assist with the technical and operational demands of ensuring these systems work efficiently.

According to a 2020 report from the U.S. Small Business Administration, small businesses account for 44% of economic activity in the United States and employ 60.6 million people or more than 47% of the private workforce. The pandemic's effect on small businesses is serious, but as the country begins to recover, CI&T's report suggests that the revival of small businesses presents an opportunity for banks to reform those partnerships.

About CI&T
CI&T is a digital solutions partner with some of the world's largest companies, assisting them in driving growth and continuous innovation across the business, people, and technology. CI&T has an established track record in providing complex end-to-end solutions for the digital enterprise, with operations in North America, Latin America, Europe, and the Asia-Pacific region.