{"id":780,"date":"2025-03-13T16:23:24","date_gmt":"2025-03-13T23:23:24","guid":{"rendered":"https:\/\/embedded.gusto.com\/blog\/?p=780"},"modified":"2025-03-14T09:54:48","modified_gmt":"2025-03-14T16:54:48","slug":"small-biz-banking-value-added-services","status":"publish","type":"post","link":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/","title":{"rendered":"How Banks Can Strengthen Relationships with Small Businesses"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Small businesses are essential to the economy, yet their banking needs evolve as they grow and their expectations change as fintechs and consumer financial apps get more traction. Traditional banks must adapt to retain and strengthen relationships with small business clients. Understanding what drives trust in these relationships is crucial for long-term customer retention.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A recent <\/span><a href=\"https:\/\/www.americanbanker.com\/\"><span style=\"font-weight: 400;\">American Banker<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/embedded.gusto.com\/\"><span style=\"font-weight: 400;\">Gusto Embedded<\/span><\/a><span style=\"font-weight: 400;\"> survey in Q3 2024 examined how small businesses engage with financial institutions, the factors influencing their banking choices, and the role of integrated services in maintaining trust. The findings reveal that while banks remain the primary financial partners for many small businesses, they are not the sole providers\u2014many businesses rely on additional service providers for payroll, financial advising, and technology solutions.<\/span><\/p>\n<p><b>Key Findings<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Banks are the primary financial partners<\/b><span style=\"font-weight: 400;\"> for 62% of small businesses, but many rely on multiple financial providers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Trust is critical<\/b><span style=\"font-weight: 400;\"> to retention, with 97% of banking leaders ranking it &#8220;critical&#8221; or &#8220;very important.&#8221;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Four pillars drive trust:<\/b><span style=\"font-weight: 400;\"> Acting in a business&#8217;s best interest, keeping money safe, protecting from fraud, and staying competitive.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Digital experience and integrated services matter,<\/b><span style=\"font-weight: 400;\"> especially as fintech solutions grow in popularity.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This blog explores key research insights, the primary drivers of trust in banking, and actionable strategies banks can implement to strengthen their small business relationships. By enhancing digital experiences, offering integrated value-added services, and prioritizing security, banks can position themselves as indispensable partners for small businesses in a rapidly changing financial landscape.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-782 aligncenter lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-06a-425x185.png\" alt=\"Banks are the primary financial partners for 62% of small businesses, but many rely on multiple financial providers. Trust is critical to retention, with 97% of banking leaders ranking it &quot;critical&quot; or &quot;very important.&quot; Four pillars drive trust: Acting in a business's best interest, keeping money safe, protecting from fraud, and staying competitive. Digital experience and integrated services matter, especially as fintech solutions grow in popularity.\" width=\"425\" height=\"185\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-06a-425x185.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-06a-1200x523.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-06a-150x65.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-06a-768x335.png 768w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-06a.png 1220w\" data-sizes=\"(max-width: 425px) 100vw, 425px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 425px; --smush-placeholder-aspect-ratio: 425\/185;\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">Understanding Small Business Banking Relationships<\/span><\/h2>\n<p><b><br \/>\nThe Role of Banks and Other Financial Partners<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Banks remain the top financial partners for small businesses, but additional service providers play key roles in meeting business needs. The table below highlights the percentage of SMBs that work with various financial service providers:<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-784 aligncenter lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-04a-425x219.png\" alt=\"A table listing column A: &quot;Financial partner' and column B: &quot;Percentage of SMBs Using&quot; that type of financial partner. Rows 1: Retail Banks &amp; Credit Unions 62% Row 2: Accountants 50% Row 3: Payroll Providers 46% Row 4: IT\/Technology Consultants 37% Row 5: Insurance Carriers 36% Row 6: Financial Advisors 31% Row 7: Attorneys 25%\" width=\"425\" height=\"219\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-04a-425x219.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-04a-1200x618.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-04a-150x77.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-04a-768x395.png 768w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-04a.png 1220w\" data-sizes=\"(max-width: 425px) 100vw, 425px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 425px; --smush-placeholder-aspect-ratio: 425\/219;\" \/><br \/>\n<span style=\"font-weight: 400;\">Importantly, 7 out of 10 small businesses surveyed use 2 or more banks or financial institutions. While traditional retail banks may still be the primary financial institution for small businesses, they are not the only financial services provider for most as the following chart from American Banker demonstrates:<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-789 aligncenter lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-07a-chart-full-425x229.png\" alt=\"Chart showing results from the American Banker Small Business Banking Survey of 2024 for percentage of respondents who consider different types of financial institutions their primary provider, not primary but in use, not using but considering, or not using or considering. Retail banks 64% primary provider, 17% not primary but in use, 9% not using but considering, 7% not using or considering. Consumer fintech companies (Square, Revolut, Betterment, Venmo, PayPal): 18% primary provider, 52% not primary but in use 14% not using but considering, 16% not using or considering. Online only\/ digital banks (Ally Bank, Discover Bank, Marcus by Goldman Sachs): 16%, 30%, 30%, 24%. Credit unions: 14%, 23%, 27%, 38%. Big tech (Alphabet, Amazon, Apple, Meta, Microsoft): 12%, 28%, 25%, 35%. Retailers (Walmart): 8%, 16%, 23%, 53%. B2B fintech companies (Brex, Mercury, Ramp, etc.): 6%, 17%, 30%, 48%. Challenger bank\/ Neobank (Chime, Current, Relay): 5%, 23%, 31%, 42%.\" width=\"425\" height=\"229\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-07a-chart-full-425x229.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-07a-chart-full-1172x630.png 1172w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-07a-chart-full-150x81.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-07a-chart-full-768x413.png 768w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-07a-chart-full.png 1220w\" data-sizes=\"(max-width: 425px) 100vw, 425px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 425px; --smush-placeholder-aspect-ratio: 425\/229;\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">Why Small Businesses Work with Multiple Financial Providers<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While banks remain the primary financial partners of most small businesses, many companies rely on multiple service providers to meet specific financial needs. According to the Small Business Administration (SBA), <\/span><b>85% of small businesses still use traditional banks<\/b><span style=\"font-weight: 400;\"> as their primary financial institution, <\/span><b>but 40% also utilize fintech solutions for payments and financing<\/b><span style=\"font-weight: 400;\">. (<\/span><a href=\"https:\/\/www.sba.gov\/about-sba\/open-government\/digital-sba\/open-data\"><span style=\"font-weight: 400;\">Source: SBA<\/span><\/a><span style=\"font-weight: 400;\">) This diversification reflects the evolving landscape where businesses seek specialized services beyond what traditional banks offer. Research indicates that <\/span><b>seven in ten small businesses use more than one financial institution or service provider<\/b><span style=\"font-weight: 400;\">. Various factors drive this trend, including the need for specialized expertise, competitive pricing, and advanced digital integration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, 46% of small businesses use third-party payroll providers instead of their primary banks, highlighting a gap in traditional banking services. Additionally, 50% of small businesses turn to accountants for financial management, while 37% rely on IT and technology consultants to optimize their operations. The reliance on multiple providers reflects the growing complexity of small business financial needs and the necessity for tailored solutions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Security and fraud protection also influence these decisions. Many businesses seek alternative providers for fraud prevention tools and more comprehensive risk management solutions. Similarly, small businesses working with financial advisors (31%) or insurance carriers (36%) demonstrate the demand for holistic financial planning beyond what a traditional bank offers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Banks can identify opportunities to enhance their service offerings by understanding why businesses use multiple providers. Providing integrated payroll, lending, and advisory services could help financial institutions retain more small business clients and reduce their reliance on external providers. The data suggests that banks that can bridge these service gaps stand to gain a significant competitive advantage in the small business sector. Accountants, payroll providers, technology consultants, insurance carriers, and financial advisors frequently supplement banking services. Businesses often seek additional providers for specialized expertise, better pricing, or enhanced digital integration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Payroll, for example, is one area where small businesses frequently turn to third-party providers rather than relying on their primary bank. This trend suggests that banks could enhance customer retention by offering integrated services like payroll that align with business operations.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Role of Trust in Small Business Banking<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Trust is fundamental to banking relationships. According to the Gusto Embedded and American Banker survey, trust in financial institutions is influenced by four primary factors: acting in a business&#8217;s best interest, ensuring the security of funds, protecting against fraud, and keeping up with customer expectations. These factors explain 80% of how small businesses perceive and evaluate their banking partners.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-787 aligncenter lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-01-425x209.png\" alt=\"Small Business Banking Trust Pillars - Acting in the business's best interest. (60%) - Keeping the business's money safe. (78%) - Protecting the business from fraud. (38%) - Keeping up with customer demands and competitive alternatives. (11%) Source: American Banker Small Business Banking Survey, 2024\" width=\"425\" height=\"209\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-01-425x209.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-01-1200x590.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-01-150x74.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-01-768x378.png 768w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-01.png 1220w\" data-sizes=\"(max-width: 425px) 100vw, 425px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 425px; --smush-placeholder-aspect-ratio: 425\/209;\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Among these trust pillars, acting in a business&#8217;s best interest is the most influential, accounting for 30% of the variance in trust levels. Keeping business funds safe follows closely at 24%, while fraud protection and meeting customer expectations contribute 13%. This data underscores the importance of proactive, customer-centric strategies in banking.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-786 aligncenter lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-02-425x156.png\" alt=\"Chart showing the variance in customer trust explained by American Banker's 'trust pillars'. 30% explained by &quot;Act in your business' best interests.&quot; 24% explained by &quot;Keep your money safe.&quot; 13% explained by &quot;Protect your business from fraud.&quot; 13% explained by &quot;Keep up with customer demands and competitive alternatives.&quot;\" width=\"425\" height=\"156\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-02-425x156.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-02-1200x441.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-02-150x55.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-02-768x282.png 768w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-02.png 1220w\" data-sizes=\"(max-width: 425px) 100vw, 425px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 425px; --smush-placeholder-aspect-ratio: 425\/156;\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Banking leaders also acknowledge the importance of trust, with 97% of surveyed executives stating that it is either &#8220;critical&#8221; or &#8220;very important&#8221; to customer retention. However, gaps emerged when asked to rate their institutions on these trust pillars. While 78% of banking leaders felt their institution excelled at keeping business funds safe, only 60% believed they effectively acted in their clients&#8217; best interest. Furthermore, only 13% rated their fraud protection efforts excellent, and only 13% felt they were keeping up with customer expectations and competitive alternatives.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To bridge these gaps, banks must take deliberate steps to reinforce trust. Providing clear communication on fees and policies, ensuring seamless integration with financial tools, and enhancing security features are crucial. Additionally, offering personalized financial guidance and proactively addressing fraud concerns can strengthen relationships with small business clients. Banking leaders recognize the importance of fraud protection, though many acknowledge that there is room for improvement. Businesses will likely remain loyal to financial institutions, prioritizing security and proactively educating clients about fraud risks.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Improving Digital Experience<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The shift toward digital banking is accelerating, with <\/span><b>over 70% of small business owners preferring mobile or online banking over in-branch visits<\/b><span style=\"font-weight: 400;\">. (<\/span><a href=\"https:\/\/embedded-info.gusto.com\/ab-finserv-ebook-0-0\"><span style=\"font-weight: 400;\">Source: American Banker<\/span><\/a><span style=\"font-weight: 400;\">) This trend underscores the growing need for banks to offer seamless digital services that allow quick account management, loan applications, and integration with financial tools. Banks that fail to meet these digital expectations risk losing clients to fintech and neobank competitors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One key expectation from small business owners is a seamless digital experience. According to our survey, 76% of small business owners prioritize ease of use when considering value-added services from their banks. Many businesses expect banking platforms to be as efficient and user-friendly as fintech solutions, and 45% specifically look for seamless integration with other financial services such as payroll, accounting, and payment processing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Digital banking services allowing quick account management, easy loan applications, and seamless integration with other financial tools can significantly enhance customer satisfaction. Additionally, businesses increasingly value automation, with features like real-time transaction updates, AI-driven financial insights, and mobile banking capabilities becoming key differentiators. With 67% of small business owners also emphasizing competitive pricing, banks that combine affordability with strong digital services are more likely to retain customers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, the demand for digital onboarding is rising. With minimal paperwork, business owners expect to open new accounts and apply for loans quickly. Some fintech companies offer account set up in minutes, setting a new benchmark for traditional banks. By streamlining digital account opening and ensuring a frictionless user experience, banks can compete more effectively with neobanks and fintech disruptors. Many businesses expect banking platforms to be as efficient and user-friendly as fintech solutions. Digital banking services allowing quick account management, easy loan applications, and seamless integration with other financial tools can significantly enhance customer satisfaction.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Offering Integrated Value-Added Services<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Integrating additional services into banking platforms presents an opportunity to strengthen relationships with small business customers. A large percentage of small businesses\u2014almost 79% of those considering changing banks\u2014indicate that access to integrated financial services is crucial to their decision-making process. Payroll services, lending solutions, and business insurance are among the features that banks can embed to create a more comprehensive banking experience. Josh Reeves, CEO of Gusto, highlights the importance of collaboration between banks and service providers to deliver solutions that better serve shared customers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;We&#8217;re not bankers, but we help solve related pains in highly regulated industries. By partnering closely with banks via embedded payroll, we want to invest in understanding how to help us all create better solutions for our shared customers.&#8221; \u2014 <\/span><i><span style=\"font-weight: 400;\">To watch the full research presentation, <\/span><\/i><a href=\"mailto:embedded@gusto.com\"><i><span style=\"font-weight: 400;\">send us an email<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> for access to the American Banker video.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Research indicates that small business owners prioritize ease of use when considering value-added services from banks, with 76% citing usability as a key decision factor. Competitive pricing follows closely, with 67% of businesses stating it influences their willingness to adopt these services. Additionally, 45% of small businesses emphasize the importance of seamless integration with other financial services, such as accounting and point-of-sale systems.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-785 aligncenter lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-03-425x219.png\" alt=\"Chart showing what bank customers prioritize when considering value-added services from their bank. Ease of use: 76%. Competitive price: 67%. Integration with other bank services (like POS systems or bank accounts): 45%. Product or service has robust security features: 42%. Underlying service provider is a trusted or known brand: 40%. Recommendations from peers or other business owners: 36%. Inclusion as part of a suite of financial management tools: 27%. Recommendation from the bank: 26%.\" width=\"425\" height=\"219\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-03-425x219.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-03-1200x618.png 1200w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-03-150x77.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-03-768x395.png 768w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-03.png 1220w\" data-sizes=\"(max-width: 425px) 100vw, 425px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 425px; --smush-placeholder-aspect-ratio: 425\/219;\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Security is also a top concern for business owners considering value-added services, with 42% of respondents ranking robust security features as a critical factor in choosing financial service providers. Banks that successfully integrate these services securely and in a user-friendly manner can enhance customer loyalty and reduce the likelihood of clients seeking alternative providers. By addressing these priorities, banks can strengthen their role as trusted partners for small businesses while expanding their service offerings to meet evolving client needs. Payroll services, lending solutions, and business insurance are among the features that banks can embed to create a more comprehensive banking experience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The data suggests that small business owners prioritize ease of use when considering value-added services from banks. Competitive pricing and integration with other financial services are also key considerations. By offering these services seamlessly and securely, banks can enhance customer loyalty and reduce the likelihood of clients seeking alternative providers.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Providing Personalized Relationship Management<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Assigning dedicated relationship managers to small business clients can help build stronger, long-term connections. Research shows that 68% of small businesses value having a dedicated banking relationship manager, with 57% stating that access to personalized financial advice significantly impacts their decision to remain with their current bank.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Personalized financial guidance tailored to specific business needs increases customer confidence and satisfaction. For example, small businesses that engage with a dedicated advisor report higher levels of trust in their financial institution, with 72% feeling that their bank acts in their best interest compared to only 45% of those without such support.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses with dedicated relationship managers are likelier to use additional banking products. Sixty-one percent of these businesses select services such as lending, treasury management, or investment solutions from their primary bank. Banks investing in knowledgeable advisors who understand small businesses&#8217; challenges can set themselves apart from their competitors. By proactively addressing the needs of their clients and offering customized financial solutions, these banks can strengthen customer retention. Furthermore, personalized financial guidance tailored to a business&#8217;s specific needs increases customer confidence and satisfaction. Overall, investing in experienced advisors is a strategic way for banks to differentiate themselves in the marketplace.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Small Business Banking Retention and Switching Trends<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Although small businesses tend to maintain long-term banking relationships, a significant portion remains open to switching providers if their needs are not met. <\/span><b>Traditional banks currently approve only 14% of small business loan applications, whereas alternative lenders, such as fintech firms, approve between 25-30% of applications.<\/b><span style=\"font-weight: 400;\"> (<\/span><a href=\"https:\/\/www.biz2credit.com\/small-business-lending-index\"><span style=\"font-weight: 400;\">Source: Biz2Credit<\/span><\/a><span style=\"font-weight: 400;\">) This discrepancy is driving some businesses to explore alternative financial institutions for better access to capital. Research indicates that 27% of small businesses will likely switch their primary banking relationship within the next two years. This likelihood increases with company size, with 39% of businesses with 250 to 1,499 employees considering a switch, compared to 22% of sole proprietors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Several factors influence the likelihood of a business switching banks. Integrated financial services play a crucial role, with 79% of businesses likely to switch, stating that access to a broad range of services is important. Competitive pricing is another major factor, as 67% of small businesses emphasize cost-effectiveness when choosing a banking partner. Additionally, the overall quality of customer experience, including personalized relationship management and digital banking features, impacts retention.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Banks that proactively address these needs by offering seamless integration, enhanced digital capabilities, and strong customer support can improve retention rates and strengthen their client relationships. Institutions that fail to meet evolving business requirements risk losing customers to fintech firms and other alternative financial service providers. Larger businesses are generally more likely to consider a change, mainly if their financial requirements evolve beyond what their current institution offers.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Meeting the Expectations of Small Business Customers<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Understanding what small businesses want from their banking partners is essential for maintaining strong relationships. However, a <\/span><b>2024 survey by J.D. Power<\/b><span style=\"font-weight: 400;\"> found that only <\/span><b>37% of small business owners<\/b><span style=\"font-weight: 400;\"> believe their bank fully understands their needs. (<\/span><a href=\"https:\/\/www.jdpower.com\/business\/ratings\/studies\"><span style=\"font-weight: 400;\">Source: J.D. Power<\/span><\/a><span style=\"font-weight: 400;\">) This gap presents an opportunity for financial institutions to enhance personalized services and tailored financial products to support small businesses better.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our survey indicates that 76% of small businesses prioritize ease of use when selecting banking services, underscoring the demand for intuitive digital platforms and streamlined account management. Competitive pricing also remains a top concern, with 67% of business owners considering cost-effective solutions a deciding factor in their banking choices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Integration with other financial services is another key expectation, with 45% of small businesses emphasizing the need for seamless connectivity between banking, payroll, and accounting software. Security is also a priority, as 42% of small businesses rank robust fraud protection and data security among their top requirements. Additionally, 40% of small businesses state that working with a trusted brand influences their banking decisions, and 36% seek recommendations from peers before selecting a financial institution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As the financial landscape continues to evolve, banks have the opportunity to reassess and expand their service offerings to better align with small business needs. Institutions that embrace digital transformation, enhance security measures, and offer integrated financial solutions will be better positioned to build lasting relationships with their clients. By addressing these priorities, banks can meet expectations and differentiate themselves in an increasingly competitive market. Businesses prioritize ease of use, competitive pricing, and seamless integration with other financial services when evaluating potential banking partners. Security, brand reputation, and recommendations from peers also play a role in decision-making.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Strengthening Small Business Banking Through Trust and Innovation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Trust is the foundation of strong banking relationships for small businesses, significantly impacting customer retention and long-term engagement. Research shows that the primary factors influencing trust include acting in the business&#8217;s best interest, ensuring security, protecting against fraud, and remaining competitive.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-783 aligncenter lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-05a-425x237.png\" alt=\"Summary graphic of the text immediately following this image.\" width=\"425\" height=\"237\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-05a-425x237.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-05a-1132x630.png 1132w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-05a-150x83.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-05a-768x427.png 768w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-graphic-smb-bankingrelationships-05a.png 1220w\" data-sizes=\"(max-width: 425px) 100vw, 425px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 425px; --smush-placeholder-aspect-ratio: 425\/237;\" \/><\/p>\n<p><b>Small businesses expect banks to provide<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seamless digital experiences<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Integrated financial services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Personalized support<\/span><\/li>\n<\/ul>\n<p><b>Key statistics<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">76% prioritize ease of use<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">67% emphasize competitive pricing<\/span><\/li>\n<\/ul>\n<p><b>Importance of integrated financial services<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nearly 79% of small businesses considering switching banks value integrated services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Incorporating payroll, lending, and advisory solutions fosters deeper client relationships and reduces attrition<\/span><\/li>\n<\/ul>\n<p><b>Personal relationship management is crucial<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">68% of small businesses value having a dedicated banking advisor<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investing in knowledgeable representatives can enhance client trust and loyalty<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Banks have a significant opportunity to reassess and expand their service offerings as the financial landscape evolves. Embracing digital transformation, enhancing security measures, and providing integrated financial solutions will be crucial in meeting customer expectations and fostering long-term relationships.<\/span><\/p>\n<p><a href=\"https:\/\/embedded-info.gusto.com\/ab-finserv-ebook-0-0\"><b>For more insights, download the American Banker white paper, &#8220;Growing Small Business Banking Relationships with Value-Added Services.&#8221;<\/b><\/a><\/p>\n<p>&nbsp;<\/p>\n<h1><span style=\"font-weight: 400;\">Summary of Survey Stats<\/span><\/h1>\n<h2><span style=\"font-weight: 400;\">Key Findings<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Banks are the primary financial partners<\/b><span style=\"font-weight: 400;\"> for 62% of small businesses, but many rely on multiple financial providers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Trust is critical<\/b><span style=\"font-weight: 400;\"> to retention, with 97% of banking leaders ranking it as &#8220;critical&#8221; or &#8220;very important.&#8221;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Four pillars drive trust:<\/b><span style=\"font-weight: 400;\"> Acting in a business\u2019s best interest, keeping money safe, protecting from fraud, and staying competitive.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Digital experience and integrated services matter,<\/b><span style=\"font-weight: 400;\"> especially as fintech solutions grow in popularity.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Understanding Small Business Banking Relationships<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A survey of 300 small business owners and leaders explored their banking preferences, the role of trust, and how financial institutions can strengthen their relationships. Below is a breakdown of the businesses surveyed:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Business Size Breakdown<\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Business Size<\/b><\/td>\n<td><b>Percentage of Respondents<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sole Proprietors<\/span><\/td>\n<td><span style=\"font-weight: 400;\">17%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">2 to 9 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">10 to 49 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">26%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">50 to 249 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">17%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">250 to 1,499 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span style=\"font-weight: 400;\">Industry Breakdown (Top Industries)<\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Industry<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Percentage<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Professional Services<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Construction<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Retail<\/span><\/td>\n<td><span style=\"font-weight: 400;\">16%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Technology<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Manufacturing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Educational Services<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Healthcare<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Real Estate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Financial Services<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">The Role of Banks and Other Financial Partners<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Banks remain the top financial partners for small businesses, but additional service providers play key roles in meeting business needs. The table below highlights the percentage of SMBs that work with various financial service providers:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Financial Partner<\/b><\/td>\n<td><b>Percentage of SMBs Using<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Retail Banks &amp; Credit Unions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">62%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Accountants<\/span><\/td>\n<td><span style=\"font-weight: 400;\">50%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Payroll Providers<\/span><\/td>\n<td><span style=\"font-weight: 400;\">46%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">IT\/Technology Consultants<\/span><\/td>\n<td><span style=\"font-weight: 400;\">37%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Insurance Carriers<\/span><\/td>\n<td><span style=\"font-weight: 400;\">36%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Financial Advisors<\/span><\/td>\n<td><span style=\"font-weight: 400;\">31%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Attorneys<\/span><\/td>\n<td><span style=\"font-weight: 400;\">25%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">What Drives Trust in Banking Relationships?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Trust plays a central role in small business banking relationships. American Banker\u2019s survey identified four core pillars that drive trust:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Trust Pillar<\/span><\/td>\n<td><span style=\"font-weight: 400;\">% of Variance in Overall Trust<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Act in the Business\u2019s Best Interest<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Keep Business\u2019s Money Safe<\/span><\/td>\n<td><span style=\"font-weight: 400;\">24%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Protect Business from Fraud<\/span><\/td>\n<td><span style=\"font-weight: 400;\">13%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Keep Up with Customer Demands<\/span><\/td>\n<td><span style=\"font-weight: 400;\">13%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">These four factors account for 80% of overall trust in a financial institution. While all are important, acting in a business\u2019s best interest and keeping money safe are the most significant drivers.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How Banks Can Build Trust<\/span><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Demonstrate Business Alignment<\/b><span style=\"font-weight: 400;\">: Small businesses expect their banks to provide advice and solutions tailored to their needs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ensure Security<\/b><span style=\"font-weight: 400;\">: Fraud protection and financial security reinforce confidence in banking relationships.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stay Competitive<\/b><span style=\"font-weight: 400;\">: Offering modern, integrated financial solutions can help banks retain SMB clients.<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">How Small Businesses Use Multiple Banks and Services<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Although 68% of small businesses consider retail banks their primary financial provider, many use multiple providers for specialized services.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>70% of SMBs use two or more financial providers.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payroll services<\/b><span style=\"font-weight: 400;\"> are often outsourced, with only 29% of businesses relying on their primary bank for payroll.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Retention and Switching Trends in SMB Banking<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Small businesses maintain long-term banking relationships, but some are open to switching providers.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Business Size<\/span><\/td>\n<td><span style=\"font-weight: 400;\">% Likely to Switch Banks in Next Two Years<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Total<\/span><\/td>\n<td><span style=\"font-weight: 400;\">27%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sole Proprietor<\/span><\/td>\n<td><span style=\"font-weight: 400;\">22%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">2 to 9 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">23%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">10 to 49 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">50 to 249 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">24%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">250 to 1,499 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">39%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">Bank Performance on Trust Pillars<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When asked to rate their performance in trust-building areas, banking leaders acknowledged gaps:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Trust Pillar<\/span><\/td>\n<td><span style=\"font-weight: 400;\">% Rating Their Bank as Excellent<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Act in Business\u2019s Best Interest<\/span><\/td>\n<td><span style=\"font-weight: 400;\">60%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Keep Business\u2019s Money Safe<\/span><\/td>\n<td><span style=\"font-weight: 400;\">78%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Protect from Fraud<\/span><\/td>\n<td><span style=\"font-weight: 400;\">38%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Keep Up with Customer Demands<\/span><\/td>\n<td><span style=\"font-weight: 400;\">11%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">What Small Businesses Want from Their Banks<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Small business leaders identified specific factors that would increase their likelihood of using value-added services from their primary bank:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Factor<\/span><\/td>\n<td><span style=\"font-weight: 400;\">% SMBs Prioritizing This Feature<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Ease of Use<\/span><\/td>\n<td><span style=\"font-weight: 400;\">76%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Competitive Pricing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">67%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Integration with Other Services<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Strong Security Features<\/span><\/td>\n<td><span style=\"font-weight: 400;\">42%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Trusted Brand<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">The Growing Importance of Embedded Services<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to Josh Reeves, CEO of Gusto Embedded:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u201cWe\u2019re not bankers, but we help solve related pains in highly regulated industries. By partnering closely with banks via embedded payroll, we want to invest in understanding how to help us all create better solutions for our shared customers.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Integrated solutions, such as payroll services, create long-term relationships between banks and small businesses. Businesses that are likely to switch banking providers prioritize institutions that integrate core and non-core financial services.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Business Size<\/span><\/td>\n<td><span style=\"font-weight: 400;\">% That Prioritize Integrated Services When Choosing a New Bank<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">250 to 1,499 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">76%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">50 to 249 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">74%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">10 to 49 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">68%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">2 to 9 Employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sole Proprietors<\/span><\/td>\n<td><span style=\"font-weight: 400;\">46%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Trust remains the foundation of strong small-business banking relationships. By understanding the trust pillars and addressing key business needs\u2014such as security, competitive offerings, and integrated services\u2014banks can position themselves as long-term partners for small businesses.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small businesses are essential to the economy, yet their banking needs evolve as they grow and their expectations change as&#8230;<\/p>\n","protected":false},"author":18,"featured_media":781,"comment_status":"closed","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,9],"tags":[],"class_list":["post-780","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-behind-the-paycheck","category-featured"],"acf":{"exclude_from_embedded_resources":false,"popularity":0,"essentiality":0},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Banks Can Strengthen Relationships with Small Businesses - Embedded Blog<\/title>\n<meta name=\"description\" content=\"Discover how banks can foster trust, integrate value-added services, and build long-term relationships with small businesses in an evolving financial landscape.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Banks Can Strengthen Relationships with Small Businesses - Embedded Blog\" \/>\n<meta property=\"og:description\" content=\"Discover how banks can foster trust, integrate value-added services, and build long-term relationships with small businesses in an evolving financial landscape.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/\" \/>\n<meta property=\"og:site_name\" content=\"Embedded Blog\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-13T23:23:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-14T16:54:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-hero-smb-bankingrelationships.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Ravi Dehar\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ravi Dehar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"17 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How Banks Can Strengthen Relationships with Small Businesses - Embedded Blog","description":"Discover how banks can foster trust, integrate value-added services, and build long-term relationships with small businesses in an evolving financial landscape.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/","og_locale":"en_US","og_type":"article","og_title":"How Banks Can Strengthen Relationships with Small Businesses - Embedded Blog","og_description":"Discover how banks can foster trust, integrate value-added services, and build long-term relationships with small businesses in an evolving financial landscape.","og_url":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/","og_site_name":"Embedded Blog","article_published_time":"2025-03-13T23:23:24+00:00","article_modified_time":"2025-03-14T16:54:48+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-hero-smb-bankingrelationships.png","type":"image\/png"}],"author":"Ravi Dehar","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Ravi Dehar","Est. reading time":"17 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/#article","isPartOf":{"@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/"},"author":{"name":"Ravi Dehar","@id":"https:\/\/embedded.gusto.com\/blog\/#\/schema\/person\/44eee5169a7ed880f87015de5d80157c"},"headline":"How Banks Can Strengthen Relationships with Small Businesses","datePublished":"2025-03-13T23:23:24+00:00","dateModified":"2025-03-14T16:54:48+00:00","mainEntityOfPage":{"@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/"},"wordCount":3197,"image":{"@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/#primaryimage"},"thumbnailUrl":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-hero-smb-bankingrelationships.png","articleSection":["Behind the Paycheck","Featured"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/","url":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/","name":"How Banks Can Strengthen Relationships with Small Businesses - Embedded Blog","isPartOf":{"@id":"https:\/\/embedded.gusto.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/#primaryimage"},"image":{"@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/#primaryimage"},"thumbnailUrl":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-hero-smb-bankingrelationships.png","datePublished":"2025-03-13T23:23:24+00:00","dateModified":"2025-03-14T16:54:48+00:00","author":{"@id":"https:\/\/embedded.gusto.com\/blog\/#\/schema\/person\/44eee5169a7ed880f87015de5d80157c"},"description":"Discover how banks can foster trust, integrate value-added services, and build long-term relationships with small businesses in an evolving financial landscape.","breadcrumb":{"@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/#primaryimage","url":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-hero-smb-bankingrelationships.png","contentUrl":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-hero-smb-bankingrelationships.png","width":1920,"height":1080},{"@type":"BreadcrumbList","@id":"https:\/\/embedded.gusto.com\/blog\/small-biz-banking-value-added-services\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/embedded.gusto.com\/blog\/"},{"@type":"ListItem","position":2,"name":"How Banks Can Strengthen Relationships with Small Businesses"}]},{"@type":"WebSite","@id":"https:\/\/embedded.gusto.com\/blog\/#website","url":"https:\/\/embedded.gusto.com\/blog\/","name":"Embedded Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/embedded.gusto.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/embedded.gusto.com\/blog\/#\/schema\/person\/44eee5169a7ed880f87015de5d80157c","name":"Ravi Dehar","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/05\/ravi-photo-150x150.jpeg","url":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/05\/ravi-photo-150x150.jpeg","contentUrl":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/05\/ravi-photo-150x150.jpeg","caption":"Ravi Dehar"},"description":"Ravi is the product marketing lead for Gusto Embedded. In the past, Ravi worked at Plaid, Homebase, Yelp, and Google, helping businesses grow with software.","url":"https:\/\/embedded.gusto.com\/blog\/author\/ravi-dehar\/"}]}},"images":{"large":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2025\/03\/EMB-blog-hero-smb-bankingrelationships-1120x630.png"},"authorDetails":{"id":18,"name":"Ravi Dehar","avatar":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2024\/05\/ravi-photo-150x150.jpeg"},"_links":{"self":[{"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/posts\/780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/comments?post=780"}],"version-history":[{"count":0,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/posts\/780\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/media\/781"}],"wp:attachment":[{"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/media?parent=780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/categories?post=780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/tags?post=780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}