Small and Medium Business Banking Landscape

This document is a technical report that outlines the current landscape of small and medium-sized business (SMB) banking in the United States. It presents the significant role that SMBs play in the economy, representing 99.9% of all businesses and contributing 44% of economic activity. The report highlights the concentration of market power among a few mega-banks, which compromises personalized service for SMBs. This creates an opportunity for community banks and credit unions to better serve this sector by addressing specific financial needs and providing tailored solutions. The document delves into the unique requirements of SMBs, such as easy access to capital, clear fee structures, effective cash flow management, and integrated technology solutions. Furthermore, it emphasizes the importance of personalized service in building partnerships with SMBs, advocating for community-oriented financial institutions to leverage their understanding of local markets to offer innovative services that meet the evolving demands of small business owners.