The April 2024 report finds SMB banking churn at 33%, up from 19% in 2017, posing risks to returns, lending capacity, and customer replacement costs. While churn-prone SMBs often use fintechs, 88% prefer services from their primary FI, making them identifiable and targetable for retention. These businesses favor modern payment rails, mobile and API channels, and fintech-like experiences, seeking speed, payment visibility, and guidance. They have broad noncredit needs and are demanding borrowers, often dissatisfied with credit experiences, requiring FIs to prioritize investments and manage expectations strategically.

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