How to Hit the Digital Banking Sweet Spot for Sole Proprietors
- Date:March 30, 2022
- Author(s):
- Gregory Magana
- Report Details: 20 pages, 10 graphics
- Research Topic(s):
- Small Business
- PAID CONTENT
Overview
Banks are missing the mark with the products they offer freelancers, gig workers, and sole proprietorships, leaving them to either languish on personal banking platforms or make the jump to an overly complex business or commercial banking option. This has left the door wide open for savvy incumbents or a range of nonbank upstarts to design options that cater to the scaled-back needs of such one-person businesses.
In “How to Hit the Digital Banking Sweet Spot for Sole Proprietors,” Javelin Strategy & Research lays out what makes these small businesses different and what they need in their ideal banking product. The time is now to build “tweener” solutions that meet the present needs of sole props and grow with them. FIs can foster win-win relationships by offering sole proprietors separation of their personal and professional finances, the features of a business bank account they need, and resources to help them grow. Failing to do so risks yielding these growing companies to upstart challengers not yet on their radar, with no way to reel them back in.
Key questions discussed in this report:
- How are the business banking needs of freelancers, gig workers, and sole proprietors different from those of larger businesses?
- Why are nonbanks a serious threat to incumbent banks’ relationships with these customers?
- What digital banking features are sole props most willing to pay for as they grow?
Companies Mentioned:
Brex, FIS, Kabbage, Lending Club, Mercury, NorthOne, Novo, OnDeck, Q2, QuickBooks, Shopify, Square, Stripe, Xero
Learn More About This Report & Javelin
Related content
Tap to Pay Brings Mobile Payment Acceptance to the Banking App
Chase and TD Bank are blazing the trail for financial institutions to build mobile tap-to-pay technology into their banking apps to enable microbusinesses, sole proprietors, and fr...
Mapping Out the Generative AI Future at Three Large Fintechs
Over the past five years, Javelin Strategy & Research has persistently raised the alarm about the escalating influence of three dominant fintech platforms—Intuit, Block, and PayPal...
Customer Service Upgraded: Four Ways Digital Can Make Small-Business Banking Human Again
For small-business owners, banking is not just a series of transactions but also a pivotal part of their long-term business strategy and growth. They seek a banking partner that un...
Make informed decisions in a digital financial world