In today's rapidly evolving financial landscape, understanding your business customers and their evolving needs is more critical than ever. At Monit, we've been diving deep into the data, and the insights we've uncovered are compelling – and should be a wake-up call for banks looking to win in the SMB segment.

We recently conducted an analysis of a vast pool of small business accounting data, comparing two distinct groups: those businesses actively leveraging a direct relationship with a fintech partner (like Square, Stripe, or others) and those who do not. The results were striking.

The Fintech Effect: Growth and Resilience

Our analysis revealed a significant difference in performance between these two groups. Businesses with a direct fintech partner demonstrated remarkable growth, outpacing their non-fintech counterparts in profit growth by a staggering 87%.

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But the impact doesn't stop at profitability. We also observed a crucial difference in financial health. Businesses utilizing fintech solutions maintained a significantly higher level of deposits, holding 41% more cash on hand compared to businesses without a fintech partner.

What Does This Mean for Banks?

These findings paint a clear picture: your business customers are increasingly turning to fintech solutions to solve pain points. They are embracing these partners for a variety of reasons, likely including ease of use, integrated services, and potentially more tailored solutions.

The Challenge: Disintermediation and Missed Opportunities

While this shift towards fintech offers benefits to small businesses, it also presents a potential challenge for traditional financial institutions. As businesses deepen their relationships with fintech providers for payments, lending, and other financial services, they are drifting away from their primary bank.

This is a critical point. Our data suggests that the businesses engaging with fintechs are not just "different" – they are demonstrably better customers. They are growing faster and demonstrating greater financial stability. These are the businesses that banks should be actively seeking to cultivate and deepen relationships with.

The Solution: Understanding and Engaging the Fintech-Savvy Customer

The good news is that this trend doesn't have to mean a loss of connection with your valuable business customers. In fact, it presents a significant opportunity for banks that are willing to adapt and evolve.

At Monit, we understand the power of data and the importance of understanding your customers' behaviors. Our platform is specifically designed to help banks gain deeper insights - and, deeper relationships - into your business customer base.

With our platform, you can:

• Identify businesses actively utilizing fintech partners: Gain visibility into which of your customers are already embracing these solutions
• Understand their financial health and growth trajectory: Leverage data-driven insights to identify your most promising and fastest-growing business customers
• Develop targeted strategies to deepen relationships: Tailor your offerings and engagement to meet the specific needs of these tech-savvy businesses
• Proactively offer relevant services: Position your bank as a valuable partner by anticipating their needs and offering solutions that complement their existing fintech usage

Don't Get Left Behind. Embrace the Fintech Future.

The data is clear: the businesses thriving in today's market are increasingly leveraging the power of fintechs. Banks that recognize this trend and proactively engage with these customers are best positioned for future success.

Monit provides the tools and insights you need to understand, identify, and build stronger relationships with these valuable business customers.

Ready to unlock the potential of your fintech-savvy business customers? Contact us today to learn how our software can help you stay ahead of the curve.

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