The key segment to nurture in 2020 and beyond

Small business is really, really big business in the US

INDUSTRY INSIGHTS FROM DIEBOLD NIXDORF

Small business is actually really, really big business in the United States. A whopping 99.9% of all companies in the US have fewer than 500 employees and are classified as small by the US Small Business Administration. Small and medium businesses (SMBs) are the most active and profitable segments in retail banking.

In a recent poll we conducted with banks and retailers, 85% of financial institutions (FIs) say the merchant segment is a growing focus, but only 28% say their service offerings to merchant clients are sufficient.

The biggest challenge in serving this critical segment may be the paradoxical ways they view their relationship with their bank:

• Getting in and out of the branch quickly is paramount as time is money for sole proprietors and SMBs with just a few employees … yet they value the connection and personal touch of engaging directly with someone at the bank who knows them.
• Three out of four merchants we polled say they would like to use automated or self-service technology to conduct business withdrawals and deposits … yet more than half say that if forced to use self-service instead of a teller, they would consider switching banks.

Until recently, self-service solutions often couldn’t provide the level of support SMBs need. Deposit bundle acceptance and withdrawal limits were designed for the average consumer, not a business professional with large daily cash-in and cash-out requirements.

Yet retailers and FIs both express a desire to use automation where it makes sense.

Modern self-service has evolved to accommodate SMBs’ distinctive needs. Our new line of self-service systems, DN Series™, enables larger, envelope-free cash and cheque deposits, more flexibility in denomination choice and immediate funds availability. Retailers even have the option to administer a one-time QR code that staffers can use to conduct transactions, ensuring greater security when business owners can’t get to the bank themselves.

SMBs need guidance to make the transition. One of the first steps should be developing a playbook that includes lobby management and self-service education for staff and consumers. Lobby leadership and consumer education are crucial to the success of new self-service implementations.

The right concierge or lobby manager can recognise an SMB as they enter the branch, direct them to a self-service terminal and describe the benefits of new features like the cash cove and cardless access, and point out features like e-receipts that make tracking cash much easier and streamlined.

In a world where nearly a quarter of SMBs we polled say they engage with a branch teller daily, it’s only common sense to offer these key customers more options that fit their needs. Plus, educating and empowering SMBs to bank the way they choose can help deepen their relationship with your brand, while enabling you to repurpose staff to conduct higher-value transactions and customer conversations.

Learn more about Diebold Nixdorf’s revolutionary new line of self-service systems at DieboldNixdorf.com/DNseries.

By Jim Flannery, Global Advisory – Banking Channel Transformation

Jim Flannery, Diebold Nixdorf

About the author
Jim Flannery is a senior manager for Diebold Nixdorf’s global advisory services business. Jim is responsible for the database management and development activities within DN’s advisory services practice. This includes functions related to the collection, processing, and data modelling – as well as the integration of the analysis into new products and services.  Jim is an expert with customer profiling and segmentation, channel profiling, and location based channel optimisation.

In his 19 years with Diebold Nixdorf, Flannery has participated in hundreds of customer engagements specialising in customer analysis, consumer research, delivery channel usage, behaviour analysis and location planning. He has extensive international experience working with banks’ customer data in all parts of the globe. Prior to joining DN, he has worked in advertising and has held various positions with SoftBank Services Group and ClientLogic.

Flannery completed a BS degree in Management Information System from Canisius College in Buffalo, NY.