U.S. Small-Business Banking: Serving the Customer of the Future

More than half of millennials who run small businesses state that they adopt new technology products as soon as they are released, according to a new Aite Group report. 

Boston, July 17, 2018 — The large and growing small-business customer segment demonstrates financial sophistication and a willingness to pay for the right products—promising untapped revenue potential for financial institutions. Banks have begun to develop strategies to better meet these customers’ needs, but they must also anticipate how small-business customers’ expectations may evolve. Aite Group’s latest report, U.S. Small-Business Banking: Serving the Customer of the Future, examines millennial-run businesses, which currently represent only a small percentage of total small businesses.

“Millennials have grown up with their technology,” explains Christine Barry, research director at Aite Group. “Their experiences lead them not only to have higher expectations for user experience and sophisticated digital tools but also to expect instant gratification; thus, they have little tolerance for the manual, paper-based processes that remain at many banks,” she adds.

This new Aite Group Impact Note analyzes the needs and preferences of millennial-run small businesses and compares them to those of more traditional businesses. Based primarily on the results of a June to July 2017 Aite Group survey of 1,000 U.S.-based businesses generating between US$100,000 and US$20 million in annual revenue, it also recommends steps for banks to take to better serve millennial-run small businesses.

To request a press copy of this report or to speak with Christine Barry about this topic, please contact us at [email protected].

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

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