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Key learnings from American Banker's Small Biz Banking conference

Key learnings from American Banker's Small Biz Banking conference

10/31/2022
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American Banker's Small Biz Banking conference was a fantastic opportunity for the BankiFi Americas team to exhibit and network with a variety of financial institutions from all over North America. 

On October 3rd, BankiFi took to Nashville, Tennessee for American Banker’s Small Biz Banking event. Here’s a run-down of the 2-day conference and the key takeaways outlined by our BankiFi Americas CEO, Keith Riddle.  

Day One

Keynote speaker, Irv Henderson of US Bank, discussed the importance of providing SMBs (Small to Medium sized Business) with functional software solutions that help them to run their business more efficiently. Irv joined U.S. Bank through an acquisition of Talech – reinforcing the fact that a fintech has an ability to be an innovative enable for a financial institution (FI) to contend with non-bank providers and emerging market challengers. 

From a U.S. Bank perspective, the digital solutions FI’s provide to SMB’s must be integrated within a broader framework to position the FI as a trusted advisor. Being a trusted advisor is crucial to an FI and is something that they should be considering. This is more the case now than ever: 

  • The confidence index noted in American Banker’s survey of SMB’s was 91.8% - the lowest in several years. 
  • Inflation is the main concern for SMB’s at the moment. 
  • However, 25% of SMBs are laying out plans for capital outlay in the next 6 months. 

“In general, SMBs are feeling optimistic about the future – however, they are concerned about what the impact of inflation will have on their business going forward. Integrating tools such as cashflow forecasting into FI’s digital offering is critical, as evidenced by the SMBs need to access cash and capital outlay that is projected over the next 6-12 months. Unified digital experiences, that are purpose built, will thrive – particularly those who have an embedded payment functionalities – as they not only meet SMB needs in the long term, but their added capabilities ensure SMBs are not left in the lurch by challenges such as late payments.” 

Day Two

American Banker and Arizent released the results from an SMB study that they conducted to Small Biz Banking delegates. A summary of the key findings is noted below: 

  • The number 1 initiative for the next 12 months for SMBs is new customers, with investment in technology being their highest priority. 
  • 66% of SMBs stated that they are very satisfied with their relationship with their FI, with another 30% of SMBs feeling ‘somewhat satisfied’. 
  • 78% of SMBs utilize 2 or more FI’s, with 41% using 3 or more. 
  • In the case of Square, they are offering a suite of digital solutions that places 80% of an FI’s small business revenue at risk. 
  • SMBs are taking a more expansive view of securing future banking needs from non-banks, with 45% of SMBs currently utilising PayPal and a further 55% considering using it. 

“Although SMBs are happy with the primary FI relationship, they are seeking more efficient digital tools to streamline payment activities and seamlessly integrate data with their accounting platforms. Non-bank providers such as PayPal have made significant inroads in disrupting FI payments and lending relationships with their SMB customers. Now, FIs need to pursue a digital services strategy – much like our Open Cash Management platform – to combat the diverse offerings from non-bank providers and reposition the FI as the SMB’s trusted advisor and financial services provider.” 

What’s next? 

Copy of Sibos 2022 DIS 20 (4)

Small Biz Banking showcased what FIs across the U.S. are going in order to combat the battle to be the ‘front door’ to small business customers and provide them with the best suite of digital solutions to run their business better. 

Wondering what we mean by the ‘front door’? You can explore this and more by downloading our latest white paper: ‘Embedded Banking, but Not as You Know It.’ Simply click here to download your copy and discover more about the following: 

  • The evolution of Digital Channels from 'Inside Out' to 'Outside In' banking 
  • Digital banking 1.0 - 'Inside Out' banking 
  • Digital banking 2.0 - mobile and omni channel 
  • Digital banking 3.0 - 'Outside In' banking 
  • The evolving role of digital banking channels in the SMB relationship 
  • Build, buy or BankiFi 

Book a meeting with Keith

Are you interested in learning more about our Open Cash Management platform? You can request a demo or reach out to Keith to book a 1-1 meeting with him.

About Elle Rushby | Marketing Executive

Elle Rushby is the Marketing Executive for banking and technology company, BankiFi. With a passion for content creation, copywriting and carving marketing strategies (to name but a few), she is very much enjoying implementing her creativity into the world of BankiFi.

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