Inside Bank of America’s plan to own the small business relationship
- Bank of America is building tools that address tariffs, cashflow gaps, and employee retention simultaneously.
- The bank is betting integration beats specialization as digital competitors chase individual pain points.
The macroeconomic climate and policies coming out of the White House have been a thorn in the side of SMBs all of last year. Despite these difficulties, the number of new business applications is on an overall upward trend, according to the most recent data by the US Census Bureau.
This may be because the actual down-in-the-trenches work of running an SMB is being made easier by FIs and fintechs. In our story today, we look at one of the biggest players in the country, Bank of America, and how it’s been enhancing its business banking offerings, as well as overall strategy to serve this segment better and pull ahead of other FIs and fintechs.
The woe of tariffs and supply chain delays
75% of SMBs report that their businesses are taking a hit due to supply chain issues, according to a report by Bank of America that came out late last year. The policy changes coming out from the White House contribute to the disruptions experienced by these businesses, many of which don’t have sophisticated rate management strategies or long term supplier contracts that would help dampen the shock.
Bank of America is helping SMB manage these volatilities by enabling access to supply chain financing and risk management solutions. Through the bank, SMBs can limit their exposure to foreign exchange volatility, by locking in rates for up to one year.
