Financial institutions have a unique opportunity to strengthen the resiliency of small businesses by providing customized financial tools and support, says Doug Brown, NCR Voyix Digital Banking Chief Product Officer, in the new PYMNTS e-book, “The Effect of Certainty”.
All businesses, large and small, will navigate the ups and downs of economic uncertainty. The unpredictable nature of markets, combined with uncontrollable external factors, poses significant challenges to financial stability. This is especially true for small business owners. Uncertainty is inevitable, but having a firm grasp of your financial situation can help reduce the impact and help business owners weather the storm more effectively.
Unlike large companies with dedicated accounting departments, many small business owners cannot afford to have an accountant on-site or even have ready access to one. Therefore, you need to rely on a variety of different financial tools to manage your money effectively. While platforms like QuickBooks provide valuable assistance, the potential for banks and credit unions to provide more comprehensive support remains untapped.
Financial institutions have a unique opportunity to strengthen the resilience of small and medium-sized businesses by providing customized financial tools and support. In addition to basic banking services, banks and credit unions can offer advanced features such as cash flow management, payroll functionality, and expense tracking. By integrating these features into their services, banking providers can help small business owners streamline their financial operations and make more informed decisions.
Additionally, financial institutions can leverage the data collected from these tools and other macro indicators to identify emerging trends and proactively reach out to business owners. By analyzing transaction data and cash flow patterns, banks can anticipate potential challenges and provide timely assistance. Proactive assistance, such as extending credit lines during recessions and providing customized financial advice, demonstrates our commitment to supporting small businesses through a variety of economic conditions.
But to truly empower small business users, financial institutions need to go beyond just offering a few tools and prioritize education and personalized support. By hosting financial literacy workshops, offering consultation, and providing other resources for financial management and planning, we can equip business owners with the knowledge and skills they need to navigate these uncertainties. . By promoting a culture of learning and support, banks and credit unions can strengthen their relationships with small businesses.
In today's competitive and evolving landscape of banking and financial services, financial institutions that prioritize small and medium-sized businesses will definitely gain a competitive advantage. By providing comprehensive tools, personalized assistance, and educational resources, banks and credit unions can position themselves as trusted partners. Additionally, by demonstrating a genuine commitment to supporting small business endeavors, you can establish yourself as a trusted banking provider in the communities you serve.
