The Small Business Administration’s (SBA) Paycheck Protection Program (PPP) has opened up small businesses to new relationships with community-based financial institutions—and the benefits that come with building business banking partnerships.
While the program is not perfect, community banks in particular rose to the occasion, flexing their competitive advantages and value propositions to woo small businesses away from large bank competitors in many instances.
The question that remains is how will community banks leverage the new opportunity presented to them? Simply remitting the funds to businesses will result in leaving a mountain of lost opportunity on the table.
Add Value to Convert Transient Accounts
One way financial institutions can maximize those new relationships is to take on the role of a trusted advisor to small business banking clients. During the “new normal” for the foreseeable future, all messaging should revolve around being there when account holders need you most—and small businesses are no exception. Experience, as well as the receptiveness to new offers of new account holders, can be combined to set the stage for a long-lasting and mutually beneficial relationship. Winning new customers over from larger competing institutions, as well as being there for them during one of recent history’s most challenging times, provides the opportunity to port over existing services from those banks.
Perhaps nothing adds more potential value to overwhelmed small business owners than a rich merchant services offering, including state-of-the-art equipment and well-supported customer service. Now may be a good time to reevaluate your existing card processing vendor relationship to answer these questions:
• Are we being offered the most competitive rates?
• Does our institution and do our merchants have access to 24/7/365 support as well as local, hands-on support?
• Does our partner offer state-of-the-art equipment, payment rails and security (fraud detection and prevention)?
• How hands-on is our partner with marketing, sales, installation and support?
• Does our partner offer referral incentives for our staff?
It can be easy to relegate your merchant services program to a simple checklist item in light of all the pressures facing financial intuitions—particularly now. But a first-rate card processing solution can actually open new streams of revenue and improve profitability as well as help you retain and attract small business banking clients during a time of great economic uncertainty.
With the influx of PPP recipients literally falling into the lap of community-based financial institutions, the hard part is done. Now it is time to convert those loan recipients into lifelong customers using a relationship-based approach supported by best-in-class products and services.
Retriever Payment Systems checks all the boxes for financial institutions seeking to elevate their merchant services offerings. Whether you are currently in the midst of a card processing vendor contract or nearing expiration, contact us to learn how we can partner with you to deliver more value to your business banking clients as well as improve the profitability of your existing merchant services program.