Dealing with the unexpected - how Small Business Owners (SBOs) have had to adapt

Fewer than half (43 percent) of US Small Business Owners (SBOs) surveyed in our recent Back to Business Small Business COVID 19 Research¹ said they had experienced a disaster previous to the current pandemic, and only 22 percent said they had a disaster contingency plan in place prior to COVID-19.²

It’s understandable that most SBOs were not prepared for a crisis on the scale of the current global pandemic. With social distancing methods in place and greater use of contactless payment methods across the consumer environment, the pandemic has accelerated consumers’ adoption of digital banking and payment options at a staggering pace. Yet another source of pressure brought forward by the pandemic. During the height of the COVID-19 pandemic, (March-April 2020), 37 percent of retail bank customers said they were using their bank’s mobile app more frequently than ever before.³ And this is key, as we know that small businesses tend to expect the same experiences as retail banking customers more generally. As a result, more small businesses are now looking to implement digital payment methods across their business as well.

As SBOs plan for recovery and address the challenges and opportunities that come with digital technologies, they will look to their banks for trusted advice; not only where the acceleration to digital is concerned but also more broadly to help them weather the storm and thrive in the future. The Back to Business research highlights that 55 percent of respondents who had looked for guidance during the pandemic, had looked to their bank(s) for help, making banks the most popular source of assistance.⁴ Furthermore, the 40 percent who did have a disaster contingency plan in place before the pandemic, say they did because their bank encouraged them to do so.⁵ These figures should be perceived as encouraging, as they clearly highlight a great opportunity for banks to offer their assistance in an advisory capacity but also to deliver the kind of digital payment solutions that can support SBOs and their businesses through the crisis and beyond.

Help and advice is already being delivered in many forms. Some efforts have focused on delivering immediate financial support to get businesses back on their feet following the pandemic. Other initiatives have concentrated on the provision of the latest digital technologies to help SBOs streamline financial transactions and drive operational efficiencies. Initiatives have included cash incentives and promotions to open new business banking checking accounts with a Visa Debit Card or cash back for a card acceptance and new merchant account and processing volumes.

SBOs may require assistance with their immediate financial woes but they must also ensure the long-term sustainability of their business. That’s where banks can step up to deliver advanced solutions tailored to the needs of individual small businesses today. Specifically, they can: