July 13, 2021 | Stamford, CT — As U.S. small businesses and middle market companies shift gears from pandemic-era survival to post-COVID-19 growth, they are rewarding banks that stood by them during the crisis. 

Among owners and executives of small businesses and middle market companies, optimism about the economy is nearing pre-COVID highs and commercial banks expect to capitalize on this resurgence to spur growth in loans and other revenue streams. However, bankers are finding out that some consequences of the crisis are outlasting the economic lockdown. For example, more than one in five companies say they are at least considering shifting their business to their Paycheck Protection Program (PPP) loan provider. 

“Many companies’ interpreted slow responses on PPP funding as a reflection of their importance to the bank,” says Dana Schwaeber, Relationship Director at Coalition Greenwich.  “At the other extreme, small businesses and middle market companies are showing their appreciation to banks that provided high levels of support during the crisis.”

The more than 500 companies participating in a recent Greenwich Market Pulse rank “valuing long-term relationships” as the number-one factor considered when assessing and selecting banks in volatile markets like 2020-2021. 

“This means human relationships matter just as much as the digital solutions that kept key functions like payments and cash management running during the lockdown,” says Chris McDonnell, Head of Digital Benchmarking at Coalition Greenwich.

The banks benefitting most from these trends in the middle market segment are Chase, Pinnacle Financial, PNC Bank, Synovus Financial, and Zions Bancorporation. These five providers named are the 2021 Standout Commercial Banks Poised for Growth by Coalition Greenwich.  In small business banking, the 2021 Standout Commercial Banks Poised for Growth are Chase, First Citizens Bank, Huntington National Bank, Pinnacle Financial, and Truist. 

These banks earned this recognition by receiving the industry’s highest scores on the Q1 2021 Greenwich Business Momentum Index, which calculates a net score for each bank based on the number of small businesses and middle market companies reporting plans to increase or decrease business with the provider.

The results of the new Greenwich Market Pulse also reveal other potentially lasting consequences from the pandemic. For example, fewer than half of small businesses and middle market companies in the U.S. now name ‘visiting the local branch or their banker’ as their preferred way to open a new account. Digital interactions have essentially taken over payments, with more than 85% of survey participants preferring electronic transactions.