As businesses have transitioned from in-person to online, digital solutions have become even more crucial to their ongoing success. Innovative non-bank providers have seized this opportunity — and are quickly pushing FIs out of the relationship.
It doesn’t have to be this way. FIs can compete — and take back small business relationships. But it will take a smart mix of technology and services, with the ongoing support that will ensure their success.
Autobooks recently analyzed a cohort of small businesses that bank with a partnering FI. In just nine months after being installed (in May of 2020), Autobooks usage increased steadily to 347%, as third-party usage decreased by 77%. As a result, corresponding deposits grew dramatically — to more than $3.5 million.