What SMBs want from their financial institution and how credit unions can deliver it

Key takeaways

• Small‑business owners are driving strong demand for tailored banking products and expect more than basic accounts and low fees.

• Cash‑flow management, frictionless digital payment experiences, and highly personalized services are now “table stakes” for attracting and retaining SMBs.

• Human support still matters: business owners want fast access to knowledgeable experts when facing complex cash‑flow or operational challenges.
• Institutions that embed growth tools into everyday financial workflows will own the future of small‑business banking and deepen long‑term SMB loyalty.

How credit unions can deliver better SMB banking experiences

At 2026 CU Growth & Innovation Summit, Paul Provenzano had the pleasure to participate in a panel discussion on "The CU Business Banking Boom: Scaling Products Without Losing the CU Identity."

He was joined by Chris Brahney, Senior Vice President of Sales and Member Experience at Nuvision Federal Credit Union and Thomas W. Sebok, Chief Commercial Banking Officer at Citadel Credit Union, for a powerful session on what it really takes to grow, differentiate, and stay true to cooperative values. 

During the session, the credit union representatives emphasized that, from a product standpoint, the strongest demand is coming from small businesses. There is strong, sustained demand from small‑business owners for tailored banking products, but which specific solutions are they prioritizing?

Winning the SMB Market: operational tools, guidance, and the human touch

1. Cash-flow Management

Small‑business owners increasingly prioritize integrated tools and resources over account balances or fee structures, looking for financial partners who help them run and manage their business, not just store funds. 

That is why, for credit unions, treasury and cash‑management services have become essential table stakes in attracting and retaining small and mid‑sized businesses (SMBs). While low‑cost commercial deposits may seem like the primary draw, SMBs are far more influenced by whether their financial institution can support their day‑to‑day operations.

They increasingly expect integrated tools, such as cash‑flow management, invoicing, and accounting, to be embedded directly in their checking and savings accounts.

From the credit union perspective, winning larger credit or capital relationships depends on meeting these foundational operational needs first; without the ability to transact efficiently, businesses will often maintain their operating accounts elsewhere. 

This presents a significant opportunity for credit unions to differentiate by embedding these operational capabilities directly into their products.

By leveraging trusted member data and applying authentic AI tools, credit unions can deliver fast, reliable insights that make business owners’ lives easier, whether through automated recommendations, streamlined workflows, or actionable financial intelligence.

The next stage of this evolution is to position credit unions as true business resources, helping members understand how AI can support their routines and decision-making.

As one expert noted, AI has become an “all‑encompassing selling point,” and the credit unions that harness it meaningfully will earn deeper loyalty and stronger commercial relationships.

Read more: Digital Banking Solutions for SMEs and Business Banking

2. Frictionless digital payments

Delivering frictionless digital payment journeys is another decisive factor in winning and retaining business members for credit unions. Even if a company wants to bring most of its business to a credit union, it simply cannot rely on an institution that lacks the electronic payment capabilities required to handle daily transactions, payroll, and commercial cash flows.

Too often, business banking is forced onto consumer payment rails, creating unnecessary limitations and operational friction that prevent organizations from transacting freely and efficiently.

To truly differentiate, credit unions must prioritize systems that make it effortless for members to send payments, run payroll, open accounts digitally, and manage financial operations on their own schedules, not just during business hours.

Without reliable electronic payment systems and efficient daily transaction management, SMBs may still place their operating accounts elsewhere. Beyond lending, these businesses are seeking guidance support with cash‑flow decisions, day‑to‑day financial challenges, and strategic insights that help them run more effectively.

At the same time, reducing friction is not only about digital tools; it’s also about providing fast access to human expertise when it matters most. Business owners appreciate intuitive systems, but when they face complex questions or cash‑flow challenges, they want knowledgeable support from real people they can trust.

The institutions that combine seamless digital payment experiences with responsive, high‑touch service will stand out against larger competitors and become the preferred financial partner for business members.

3. Tailor services to each business segment

Small‑business owners are naturally drawn to credit unions for their ability to tailor credit, lending, and working‑capital solutions with a level of personalization large banks rarely match, particularly in the sub‑$20 million segment, where a human‑centered, relationship‑driven approach is a powerful differentiator.

Credit unions can offer a more realistic, empathetic, and cost‑effective alternative to traditional banks while still generating strong revenue. However, even when SMBs appreciate this personalized experience, they cannot fully commit their banking relationship if the institution cannot support their operational needs.

This requires more than products; it requires expertise, continuous conversation, and a clear understanding of what members truly need.

Credit unions that combine personalized credit solutions, modern digital infrastructure, and advisory‑level engagement will become indispensable partners for SMBs.

Dig deeper:

• One login, multiple accounts: redefining digital banking convenience

• Transforming the commercial banking experience for business clients

• Building a next-level small digital business strategy

   

How credit unions can win SMB loyalty 

To earn and retain SMB loyalty, credit unions must pair their relationship‑driven strengths with the digital capabilities today’s business owners expect. ebankIT’s digital banking platform enables exactly that by uniting advanced AI, modern payment infrastructure, and a human‑centered experience into one cohesive solution.

The result is a frictionless, business‑ready ecosystem that allows credit unions to close capability gaps while reinforcing what makes them unique.

With ebankIT, credit unions can deliver the seamless digital journeys SMBs rely on,  from streamlined onboarding to 24/7 self‑service and conversational banking. Members can open accounts, move money, run payroll, or request support whenever they need, without being restricted by branch hours.

Just as importantly, ebankIT empowers credit unions to move beyond consumer‑grade payment rails. Its commercial‑ready payment engine supports real‑time transactions, payroll, bulk operations, and integrated cash‑flow operations, removing the friction that often drives SMBs to larger institutions.

By embedding cash‑flow dashboards and AI‑powered analytics directly into business accounts, ebankIT gives SMBs immediate access to insights that inform daily decisions. From forecasting to spending trends, AI becomes an essential tool that helps them run their business more efficiently. It positions the credit union as a trusted financial ally, not just a service provider.

In short, ebankIT equips credit unions with the digital sophistication SMBs expect and the personalized engagement they value, creating a powerful foundation for long‑term loyalty and growth.

Let’s talk about your SMB growth strategy!

With ebankIT, financial institutions can move from being just a “money holder” to being a true financial partner, guiding SMBs, anticipating their needs, and delivering flexible, digital-first solutions.

If you are interested in learning more about our solution, you can visit our booth to see the ebankIT omnichannel digital banking platform in action.