The largest banks pulled back from small business lending during the recession, yet even in this strong economy, community financial institutions and FinTech companies have struggled to fill the gap.  This 46 page comprehensive study, presented in cooperation with PayNet, examines how inefficiencies for the former and high costs for the latter have hindered small business lending and how overcoming these challenging may offer the key to unlocking small business opportunities.

As financial institutions continue in their efforts to attract new clients and keep their current customers, they should be careful not to overlook small businesses. With small business sales, profits, and hiring numbers on the rise, this segment may be in the market for products and services to help them maintain and grow their companies. Financial institutions that understand the needs of these potential clients and gear their messaging and offerings to them may be able to earn their business.

Despite market volatility and regulatory uncertainty, Raddon’s research shows small business owners are more optimistic about the economy than the general public, and more optimistic than they were two years ago. Maintaining this optimism will generate opportunities for financial institutions, as well as greater competition from industry and third party players. Financial institutions wanting a strategic advantage in this environment will be those that effectively target their small business customers and offer products and services that fit their distinctive needs.