Marcus Rothaar

With the passage of December’s $900 billion coronavirus stimulus package, the Paycheck Protection Program resumed on January 11, giving financial institutions another opportunity to facilitate much needed assistance for struggling small businesses. While small businesses have shown signs they are becoming more optimistic that business conditions will improve in 2021, challenges still exist in many sectors.

At the typical community-based financial institution, checking account opening volume plummeted more than 200 percent in March and still had not fully recovered by the end of the second quarter of 2020. The slowdown was a reflection of the COVID-19 pandemic putting a pause on many aspects of life in the U.S. As consumers and financial institutions continue to adjust to life during a pandemic, what does “normal” mean for checking accounts in 2020 and beyond?

As many small businesses struggle to navigate the COVID-19 pandemic, financial institutions have an opportunity to step in and extend a lifeline to small business owners, many of whom are relying on their financial institutions to provide resources, insight and stability.

By proactively reaching out to small business owners, instituting provisions to provide them relief, and connecting them with local, state and federal programs, financial institutions can make a meaningful difference now and create long-term loyalty among small business accountholders.

“Apple Card is here. A credit card created by Apple, not a bank. Built for simplicity, transparency and privacy. Apply now on your iPhone, and start using in minutes.” – Apple Inc.

Raddon recently hit the road for a series of workshops with participants in our Performance Analytics program. We hosted sessions in 17 cities east of the Mississippi, meeting with over 500 financial services executives along the way. (Note: We’ll be visiting the western half of the country in June; registration is now open for those sessions.)