Boston, February 25, 2016 – More than three-quarters of U.S. small businesses manage their finances without the help of an internal financial controller or accountant on staff, and most business owners struggle to create financial statements and forecast cash flows. But small businesses’ lack of financial expertise creates opportunities for financial institutions. To reclaim their roles as financial partners and advisors, banks must provide their small-business customers with more actionable data and tools that help them more easily and effectively manage their finances.
This Impact Note explores how small businesses manage their finances and the challenges they face when doing so, recommends ways in which banks can address customer challenges, and concludes with the reasons banks should be making these investments now. It is sponsored by D3 Banking and is based primarily on the results of an October 2015 online survey of 1,000 U.S.-based businesses generating less than US$20 million in annual revenue.
This 18-page Impact Note contains 11 figures. Clients of Aite Group’s Wholesale Banking & Payments service can download this report.