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By Novantas - The Changing Face of Business Banking: Women, Minority Owners Possess Unique Needs and Demands
Novantas’ 2018 Business Banking research relies on data collected from more than 3,100 business-banking decision makers in the U.S. and Canada. It underscores the need for banks to create products and services to meet these new demands. If they don’t, they risk disruption from nimbler fintech competitors and other new entrants who are eager to serve the same segment.
Nearly a decade after the Great Recession crushed the dreams of many would-be entrepreneurs, new business creation has finally ramped up. But it’s not business as usual. New research from Novantas finds that the post-recession business owners look and behave much differently than their more-established counterparts. They are women, they are minorities, and their companies are based in urban areas. The owners of these younger companies place different demands on their banks than do other small businesses. That is due, in part, to the vast advancements in technology over the past decade. These entrepreneurs prefer digital channels for increasingly-complex banking tasks, challenging the industry’s traditional relationship-manager model. They also want to get business and financial advice through non-traditional channels. And just as importantly, they see few distinctions between banks.