December 02, 2025 — A significant shift is underway in the U.S. commercial banking landscape, with one-third of U.S. middle-market companies thinking about switching banks. This presents a substantial opportunity for banks to attract new clients and expand their market share.
Crisil Coalition Greenwich asked the 766 business owners and executives from middle market companies and small businesses participating in its most recent Greenwich Market Pulse about their future banking plans. About 1 in 5 small business respondents said they were planning to switch banks in the coming year or were at least open to solicitations from new providers. Among middle market respondents, that number hit 33%.
“Respondents from both small businesses and middle-market companies said they are considering switching banks for two main reasons,” said Chris McDonnell, Head of Commercial and Digital Banking Analytics at Crisil Coalition Greenwich. “They are looking for lower fees on credit and cash management services, and they want better customer service.”
Opportunities for Regional Banks
As economic uncertainty persists, many commercial businesses are seeking banking partners that can offer a more personalized and informed approach. Regional banks, perceived as having a deep understanding of local markets and industries, as well as high-quality, hands-on service, are well-positioned to capitalize on this trend.
In fact, one-third of small businesses and middle market companies would consider switching to a regional bank if they were to change providers, making regional banks the clear top choice. This preference is evident in the data, with 33% of companies favoring regional banks, followed by community banks (26%), national banks (24%), and super-regional banks (20%).
The desire for better customer service and relationship managers is driving this trend, and regional banks are poised to benefit. With their local expertise and personalized approach, regional banks can build strong relationships with clients and provide tailored solutions to meet their unique needs. As a result, we may see a number of regional banks beginning to displace larger national providers that cannot match the same level of service.
A Possible Opening for Nonbank Providers
While only 19% of small businesses and middle market companies have obtained credit from a nonbank provider in the past 18 months, there are signs that this number may continue to grow. With a number of companies expressing dissatisfaction with their banks' willingness to provide loans, and many reporting a noticeably easier credit process with alternative providers, the door may be opening for nonbanks to increase their presence in the commercial banking space.
“If a small business or middle market company is thinking about switching banks to lower costs on credit and cash management services, more and more are going to at least talk to a nonbank provider,” says Chris McDonnell.