Rethinking Business Checking: Why It's Time for Banks to Modernize

Business checking accounts have long been the cornerstone of small business banking. Yet, for many financial institutions, these accounts have remained largely unchanged — offering basic transaction tracking and limited digital tools. In an era where small and micro businesses demand more from their financial partners, it's imperative for banks to evolve their offerings. 

The Current Landscape: Stagnant Offerings 

Traditionally, business checking accounts were designed around account analysis features, focused on physical item processing, balance reporting, and fee offsets. Over time, treasury and cash management tools were layered in, offering positive pay, ACH origination, and wire transfers — features that often cater more to mid-sized and large businesses. 

But for the millions of small and micro businesses, these services offer little practical value. 

Interviews with our customers reveal that 80–85% of business checking accounts are either free or very basic, with no value-added digital tools. These accounts often serve as pass-through tools—used primarily to deposit payments and occasionally pay bills — not as true operating accounts. 

The Rise of Fintech: A Better Business Banking Experience 

Fintech challengers like QuickBooks and Square have stepped in to fill the gap. QuickBooks in particular has created a bundled experience that combines: 

• A business checking account 

• Integrated accounting 

• Invoicing and payment acceptance 

• Working capital access 

While they offer a free checking option, QuickBooks primarily promotes this bundled offering — which comes with a monthly subscription fee to the business owner. The result? A tightly integrated back-office hub designed for the needs of small business operators. 

And it’s working: QuickBooks has successfully transitioned from accounting software into a bank-like platform, eroding the primacy of traditional financial institutions. 

Why Financial Institutions Must Respond 

The question becomes clear: What if banks could offer the same modern experience — without forcing customers to leave their trusted financial institution? 

That’s where Autobooks, integrated within your checking account offering, comes in. 

A Better Business Account, Delivered by the Bank 

With Autobooks, financial institutions can offer a business checking experience that rivals fintechs — while going even further: 

• Digital tools like invoicing, online payments, and real-time cash flow tracking 

• Embedded financial reporting including profit & loss and balance sheets 

• Payment acceptance built in, not bolted on 

• Access to working capital (complimentary to traditional bank lending) when needed 

• All integrated directly within the bank’s digital banking experience 

And unlike fintechs, banks can provide: 

• Personal banking relationships under the same brand 

• Lending products, credit lines, and merchant services 

• A path to scale into more sophisticated business banking as the customer grows 

Benefits for the Financial Institution 

Re-thinking business checking doesn’t just help the customer — it creates tangible value for the FI: 

• Introduce a premium (paid) tier of business checking designed for the largest business market segment - that delivers real value and drives non-interest income 

• Reach overlooked segments, including gig workers and side hustlers in your retail base 

• Create stickier relationships by embedding day-to-day tools inside the account 

• Defend against fintech competition like QuickBooks, which are actively pulling business relationships away from the bank 

The Big Idea: Design for the Segment that Actually Needs It 

Most business checking products are designed for “commercial banking” needs — not for the millions of micro and small businesses that make up the majority of accounts. 

What if your bank designed a checking experience specifically for them? 

What if those accounts included tools they actually use, and helped them run their business more effectively? 

Would more of them be willing to pay for that account? 

All signs say yes. 

With Smart Checking from Autobooks, financial institutions can finally offer a business checking experience worth paying for — and stay one step ahead of fintech challengers.