‘Traditional banks have equated advising with cross-selling’: Grasshopper’s Danielle Kane on why just 7% of SMBs see banks as trusted advisors
Grasshopper Bank’s research highlights a significant disconnect between traditional banks and small business owners. Only 7% of SMBs regard their banks as trusted advisors, indicating a shift away from transactional relationships focused solely on fees and rewards.
Danielle Kane from Grasshopper notes that this trend reflects broader industry frustrations as businesses seek more meaningful partnerships rather than mere sales pitches. Banks that continue to prioritize cross-selling over genuine advisory roles risk losing their relevance to SMBs who are increasingly looking for strategic guidance and support.
Key takeaways
- ▸Only 7% of SMBs view their banks as trusted partners.
- ▸Traditional banks focus heavily on transactional relationships rather than advisory roles.
- ▸There is a growing demand for meaningful partnerships from SMBs.
- ▸Banks not adapting to this need may risk losing SMB customers.
Why this matters
The findings suggest that traditional banks need to evolve their strategies to foster genuine relationships with small businesses. As SMBs seek strategic partners rather than just financial service providers, banks that cling to outdated models risk losing a vital customer base. Enhanced advisory roles could differentiate banks in a competitive market and better meet the evolving needs of small business clients.