The American Banker’s 2025 Small Business Banking conference recently held in Hollywood, Florida, underscored the critical role of banks in fostering the growth and success of small businesses. The conference served as a platform for industry leaders to discuss the unique financial challenges faced by small-business owners and how banks can best meet their needs. This article encapsulates the key insights gleaned from the conference and the implications for the banking industry.
An Ongoing Dialogue with Small Businesses
One of the key points of discussion during the conference was the importance of maintaining an ongoing dialogue with small-business owners. Sekou Kaalund, the head of branch and small-business banking at U.S. Bancorp, asserted that while banks might not have any control over certain external factors such as tariffs, inflation, or interest rates, they can and should engage in meaningful conversations with small businesses. Such interactions can help banks understand the specific needs of small businesses and provide them with tailor-made solutions that can potentially shape their future success.
Providing Value through the Four S’s
In a keynote address, Chris Ward, the head of U.S. small-business banking at TD Bank, and Sandy Hanson, the small-business program director at Barlow Research, emphasized the importance of speed, simplicity, service, and safety in small-business banking. They stressed that small-business owners require more than just loans and checking accounts. They are in need of quick responses, user-friendly platforms, outstanding service, and robust fraud protections. By meeting these needs, banks can not only retain their current small business clients but also attract new ones.
Embracing Digital Payment Solutions
The conference also spotlighted the rising demand for digital payment solutions among small businesses. Kristen Link, a product manager at U.S. Bancorp, emphasized that not all small businesses have the same needs, and as such, banks need to offer a broad range of solutions. These must be organized in a manner that is user-friendly and that makes sense for their users. She highlighted the growing popularity of Zelle, a digital payment service used by banks to facilitate peer-to-peer payments, among small businesses owing to its speed and low cost.
SBA Loans: A Viable Option during the Government Shutdown
Even in the face of a government shutdown, SBA loans remain a viable option for small businesses, as indicated by the panelists at the conference. While the processing of these loans might be delayed due to the shutdown, banks can still accept applications, underwrite loans, and approve them. Nuno Francisco, a business banking market executive at Citizens Financial Group, emphasized the importance of keeping an open dialogue with customers during this period, reassuring them that their loans would still be processed, underwritten, and approved.
In conclusion, the 2025 Small Business Banking conference served as an important reminder of the pivotal role banks play in the success of small businesses. By understanding and meeting the unique needs of small businesses, banks can not only help them navigate their financial challenges but also contribute to their growth and success. The key lies in maintaining an ongoing dialogue with small businesses, providing value through the four S’s, embracing digital payment solutions, and offering viable loan options even during challenging times like a government shutdown. Here is the source link for more detailed insights from the conference.
