April 14, 2021 | Stamford, CT — Record numbers of small businesses and midsize companies in the U.S. are considering switching banks due to what they saw as inconsistent support from their banks during the COVID-19 crisis. 

If these companies follow through, it will increase bank balances and put fees up for grabs. To win a share of this prize, commercial banks must be ready for a thoughtful pivot back to pre-pandemic norms, including branch service and in-person meetings.

As commercial banks compete for this “money in motion,” they need to be ready to balance pre-pandemic business practices that emphasized in-person meetings with clients. “It’s time for commercial banks to switch from defense to offense and embrace both Zoom and in-person,” says Chris McDonnell, Head of Digital Benchmarking at Greenwich Associates and co-author of As U.S. Businesses Return to Offices, Historic Bank Switching is Likely.

There is no doubt that the sudden shift to working from home during the crisis changed commercial banking forever. By forcing small businesses and midsize companies to switch to digital banking tools virtually overnight simply to keep their businesses running, the pandemic greatly accelerated the digitization of the industry. 

For a large share of companies, working from home is a temporary phenomenon and the vast majority of commercial banking clients plan to resume business as usual. In fact, only 37% of commercial banking clients are ruling out in-person meetings with bankers entirely. The remaining 63% are ready to resume in-person meetings with appropriate COVID-19 safety precautions, including mask wearing and prohibitions on handshakes and other physical contact. 

“Even after the pandemic era ‘Zoom Boom,’ banks should avoid falling into the trap of relying too heavily on seemingly easy and cost-effective video meetings,” says Ron Balmer, Greenwich Associates Relationship Director and co-author of the new report. “To the contrary, they should be ready to employ a mix of traditional and digital channels including phone calls, video meeting, in-person visits, and digitally delivered insights on industry best practices and essential topics like working capital.”