The Financial Brand Insights - Fall 2022

How Banks Can Meet SMB Demands for Omnichannel Payments

Community financial institutions can assist businesses in meeting their goals by partnering with a payments provider to offer merchant services. This partnership will increase customer satisfaction, retention rates, competitive differentiation, and ultimately, level the playing field with larger regional and national banks. What Capabilities Local Businesses Want Broadly speaking, merchant services enable businesses to accept and process electronic payment methods. The emergence of omnichannel commerce, where the payment process can happen online or offline, and the ability to accept payments virtually and in-person are now integral functions of a small business customer. Community banks and credit unions must recognize that offering small businesses a credit card terminal, competitive pricing and timely deposits is no longer enough. According to a survey by Paysafe, 52% of customers at 65% of businesses want more payment options. These can include methods beyond credit cards like cryptocurrencies (decentralized digital currencies) and digital wallets that store payment information and passwords. Offering streamlined services is foundational in today’s business ecosystem. When the small business owner views the community bank as a business partner, it creates strong, long-lasting customer relationships. Companies that use their community financial institution for their merchant service needs will also bring in more revenue for the bank. Research, by payments provider Elavon, shows an 88% increase in average revenue, an 85% increase in deposits and an 80% increase in loans from businesses that use their community bank for merchant services versus those with only a checking account. Working with a third-party payments provider is an opportunity for community financial institutions to provide customers with the type

By Elan Financial Services

Payment methods are constantly evolving and to meet the expectation of customers in today’s omni-commerce world, small businesses want to offer services such as mobile app payment processing and text-to-pay — but need a trusted provider to make it happen. What better partner than their community bank or credit union? Research shows that small businesses overwhelmingly prefer to have all their banking and credit needs met by one financial institution. According to BlueVine, nearly nine out of ten small businesses (87%) consider it important for a single provider to handle their credit and banking services. Additionally, a recent study by J.P. Morgan and Forbes shows that 52% of executives plan to consolidate their treasury and payment service providers. Small businesses want to offer their customers the latest digital payment tools. There are many specialized solutions available but small businesses often prefer dealing with a single financial institution. Here are several options for how community banks can keep up in payments.

Single Source Banking:

of small business owners prefer a single, primary financial institution for their banking needs. 87%





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