Similar to retail customers, SMBs are moving over to digital channels. This has been helped by banks adopting a digital model as they pursue further cost efficiency as well as adapting to changing customer preferences. In fact, digital technologies are a higher priority for global banking executives compared to regulatory issues according to The Economist Intelligence Unit.
The research reveals that as a result more SMBs now bank digitally than use the branch. Unfortunately, this shift to digital has weakened the relationship between banks and SMBs.
This deterioration of the relationship has meant that SMBs are now less loyal and are increasingly viewing banks as nothing more than utility providers. 47% are tempted to switch and when looking for more complex financial products 42% will shop around, rather than speak to their incumbent provider.
Losing SMB custom could be highly damaging for banks who can ill afford to lose market share, reputation, and ultimately revenues. The challenge for banks is demonstrating they understand and care about these businesses and can help them grow–all via digital.