Effectively Providing Best in Class Service for Small Business Clients in Branch

The last few years have provided significant challenges to small businesses. Whilst larger corporations had enough money in the bank to whether the shutdowns forced upon them by the global COVID-19 crisis, many smaller businesses struggled to survive – if they did indeed survive.

While it is difficult to pin down exact numbers, Vice President Kamala Harris stated that approximately one third of small businesses closed forever as a direct result of the pandemic – a figure which has been deemed reasonably accurate by economists and industry tracking bodies.

"As of [June 2021], the Tracker showed there were 37.5% fewer small businesses open nationwide compared with January 2020, two months before the pandemic hit the United States,” said PolitiFact. "In California, the share of small businesses decreased 39.1% over this period.”

Those businesses which have survived to see their doors reopen after restrictions were lifted find themselves needing support from customers and partner organizations to facilitate their comeback from the crisis – and this includes their banking partners.

Post-Pandemic Banking

2022 research published in the J.D. Power 2022 U.S. Small Business Banking Satisfaction Study found that 76% of small business owners desire an increased level of financial advice from their commercial banking services. However, only 15% admitted they were receiving the kind of comprehensive guidance they felt they needed.

"They are looking to their banks for guidance on things like available credit, tips to reduce fees, and technology that can benefit their businesses,” said Senior Director of Banking and Payments Intelligence at J.D. Power, Paul McAdam. "This scenario presents an enormous opportunity for banks to deliver comprehensive advice that takes into account a full understanding of the company’s business goals and shows real, committed partnership.”

This means that banking brands seeking to compete in the increasingly competitive world of small business financial services provision need to ensure that staff are properly trained to deliver the kind of financial advice small business owners are seeking. They need to be friendly and amenable, whilst simultaneously being sensitive and knowledgeable on the specific challenges small business owners are likely to be facing in the post-pandemic environment.

"Anybody competing in this space needs to be good with people. Small businesses use the phone, they use digital, but they do like receiving good service from staff, so that is really going to be the challenge that any new entrants will face as they try to penetrate small business relationships,” McAdam added.

The figures above suggest there exists a real opportunity for banking brands to provide a service to small business owners which is both desperately needed and currently criminally underserved. Brands which are able to act quickly and promote themselves along these lines will stand an excellent chance of drawing small business owners through their branch doors and acquiring their business.

JPMorgan Chase

A terrific example of a brand which is investing heavily in this area can be found in JPMorgan Chase. The financial giant has recently opened a brand-new community inspired branch in West Baltimore and made a $600,000 commitment to help grow and scale small businesses in the region.

"JPMorgan Chase has marked the grand opening of a completely new branch experience at Mondawmin Mall in West Baltimore,” said the company in a press release. "The Mondawmin Community Center aims to help local consumers and businesses realize a better financial future through innovative tools, resources, and programming. The location looks and feels different from a "typical” bank – it combines a modern design, spacious layout, and state-of-the-art banking technology, reflecting how customers engage with Chase today.”

The branch will offer innovative and unique assistance to small business owners in West Baltimore through a host of features and services including:

• Specialty financial health workshops on topics such as, budgeting, credit and homeownership hosted by experts for both individuals and groups
• Free one-on-one mentorship support to help local entrepreneurs grow, start or expand their small business
• A community "living room” area to serve as event space for partner non-profits
• Wi-Fi for community groups and residents to utilize for remote learning and work.

JPMorgan Chase also intends to use the site to gather critical data on small businesses and individual financial needs and share that information with business, government, and community leaders to help drive further investment and motivate policy decisions in the region.

Final Thoughts

Small business owners need more help than ever from their banking institutions and will be willing to shop around to find a provider which can meet their post-pandemic needs most effectively. Now is the time to transform your branches into community service hubs where local entrepreneurs can learn how to make their businesses thrive anew.

How to better serve small business clients is sure to be part of the conversation at Future Branches Boston, being held in June at The Westin Copley Place, Boston, MA.

Download the agenda today for more information and insights.