August 4, 2021 | Stamford, CT — U.S. community banks have an opportunity to capitalize on their impressive performance during the COVID-19 crisis by capturing business from small and middle market companies frustrated with a perceived lack of support by their banks last year.

Almost one-third of U.S. small businesses and 28% of middle market companies participating in a Coalition Greenwich study said they were likely to switch banks due to negative experiences with their current banks during the pandemic. 

Among the most common complaints from business owners and executives were breakdowns in the PPP loan application process and non-responsive bankers, especially in the early days of the crisis.

If companies follow through on these switching plans, it would put up for grabs more than $600 billion in business checking and bilateral credit balances, and more than $4 billion in checking and cash management fees. 

According to the study results, only 37% of small business banking customers using a national bank say their bank was helpful in addressing their needs during the crisis. Among community bank customers servicing both, small and middle market businesses that share tops 80%.

“Community banks outperformed bigger competitors and scored points with their own customers last year by providing strong support during one of the most disruptive and challenging periods on record,” says Jacqueline Vose, Head of Community Banking at Coalition Greenwich and author of 5 Ways to Accelerate Customer Growth - Community Banking. “In the wake of that performance, things are lining up for community banks. They have plenty of capital, credit conditions are better than expected, and community bank leaders are primed for growth.” 

However, even these favorable conditions do not change the fact that community banks will be competing against rivals with deeper balance sheets, more resources, larger technology budgets, and longer menus of services and capabilities.

To help community banks convert goodwill from 2020 into growth in 2021 and beyond 5 Ways to Accelerate Customer Growth - Community Banking presents a series of data-driven recommendations to help them compete against bigger providers by getting the most out of their own resources and capabilities.