Five Strategies for Small Business Success — Part 2: Fintech Partnerships, Accounting Integration, and Relationship Banking

In Part 1 of this series, we explored how financial institutions can enhance personalization and payment capabilities to better serve small business customers. But to fully capitalize on the small business opportunity, financial institutions must take additional steps to strengthen these relationships.

This blog will cover the final three strategies that banks and credit unions should adopt to remain competitive:

1. Partnering with fintechs to enhance banking capabilities
2. Tighter integration with accounting systems
3. Capturing the full small business relationship

3. Partnering with Fintechs to Enhance Banking Capabilities

Fintechs have become formidable competitors, offering digital-first experiences that small businesses demand. However, instead of viewing fintechs solely as competitors, banks can partner with them to expand their product offerings and improve the customer experience.

According to industry research:

• Nearly 65% of small businesses use a fintech company to supplement their banking services​
• The most successful financial institutions are those that integrate fintech solutions to deliver better functionality without requiring customers to leave their banking app

The Opportunity

Financial institutions that embed small business-friendly fintech solutions, such as Autobooks, within their online and mobile banking platforms can:

• Offer seamless invoicing, payment acceptance, and cash flow management
• Provide value-added services that keep small businesses engaged
• Improve customer retention and deposit growth

What Banks Can Do

• Evaluate fintech partnerships that align with business banking needs
• Offer embedded financial tools without requiring additional logins or third-party accounts
• Leverage customer data insights to identify and promote relevant financial solutions

4. Tighter Integration with Accounting Systems

For many small businesses, accounting and cash flow management remain major pain points. Traditionally, financial institutions have left this function to third-party accounting platforms like QuickBooks. However, this disconnect forces businesses to rely on multiple systems, making financial management more cumbersome.

The Challenge

Many financial institutions still focus on basic transaction-based services, but small businesses need a more holistic financial management experience.

The Opportunity

Banks and credit unions that integrate accounting features directly into digital banking can:

• Simplify financial reporting and cash flow management for small businesses
• Reduce reliance on third-party apps that compete for small business relationships
• Improve engagement and revenue through premium business banking solutions

What Banks Can Do

• Embed automated accounting features within their online and mobile banking
• Offer real-time cash flow tracking and expense management
• Provide customizable reporting tools to help businesses make informed financial decisions

5. Capturing the Full Small Business Relationship

Small businesses need more than just deposit accounts and loans—they require a full suite of financial services that support their growth. Financial institutions that fail to provide these solutions risk losing business customers to fintechs and alternative lenders.

The Opportunity

By offering a comprehensive small business banking experience, financial institutions can:

• Increase customer retention by addressing all financial needs
• Drive non-interest revenue through business-focused financial products
• Strengthen relationships and loyalty among small business customers

What Banks Can Do

• Provide business lending, cash management, and merchant services under one roof
• Ensure all financial tools are integrated within digital banking
• Offer proactive financial guidance to help businesses optimize their finances

Conclusion

By adopting these five strategies, financial institutions can differentiate themselves from fintechs, enhance customer engagement, and drive long-term small business growth.

Financial institutions that act now will be best positioned to lead the next era of small business banking.