Deep Dive: As big banks overlook them, small businesses turn to small banks and fintechs during the crisis
- Small businesses have needs when it comes to accessing government relief loans.
- Smaller, regional banks and fintechs are stepping in the fill the void left by mega banks.
Small business demand for government relief is at record levels. Bigger banks, for the most part, have forsaken SMBs. Smaller banks and fintechs have emerged to service small and medium businesses with streamlined loan processes, technology, and new onboarding tools.
Tearsheet’s Sara Toth Stub wrote a story on the challenges SMBs are facing in this market and what type of financial services firms have emerged to help them.
Sara Toth Stub is my guest today for a deep dive podcast to discuss how small businesses are increasingly turning to smaller banks and fintechs during the pandemic.
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The following excerpts were edited for clarity.
Small businesses, mega banks
Even before the coronavirus pandemic, many small businesses — especially ones with employees — were banking with large banks. That’s according to a survey Cornerstone Advisors’ Ron Shevlin did before the pandemic. He found 75% to 80% of small businesses were banking with a mega bank.
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