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Small Business Saturday: Why Banks And Businesses Need To Start Playing Offense

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November is here and that means shopping and eating will be among our top priorities as the frenzy of the upcoming holidays kicks in. It’s also a time for small businesses to pull out all the stops to make sure they are seen and heard. This weekend is Small Business Saturday, an opportunity to support the local businesses that are pivotal to our communities. It’s amazing to see how many rally around the initiative  last year it generated a reported $15.4 billion for small businesses across the country. And while Small Business Optimism remains at near-record levels and employment gains continue at a steady pace, the reality is that challenges for the small business community persist. Highlighting this is the fact that almost 6,800 retail stores have closed so far this year.

Obviously, there are a variety of factors that play into these closings, but one of the key challenges facing small businesses also plagues the banking industry: the fear of fully leaning in and embracing technology.

A recent index found that only about half of small business owners surveyed are using technology to change the ways they market and operate their businesses.

Simply put, that isn’t good enough for small businesses trying to make it in a hyper-competitive environment.

Similarly, while I do believe the banking industry has made strides in embracing technology over the past few years, the reality is that far too many bankers are still “playing defense” when it comes to fully integrating technology into every aspect of their business.

This reactive approach is more about merely checking the boxes when it comes to digital tools instead of thinking ahead of the curve and adapting the latest technologies that can help them satisfy evolving consumer demand. The banks (and small businesses) that are thriving are constantly looking for ways to reduce friction for clients and customers who aren’t yet aware the friction exists.

Warby Parker is a perfect example. The eyewear company has plenty of brick and mortar locations throughout the country, but every aspect of their business is built on a digital platform that provides a seamless customer journey. If you buy a pair of sunglasses online, but you want them tightened in-store, your measurements and information are integrated into the company’s system, so any location can instantly access your profile.

Likewise, the banks of tomorrow are the ones that are integrating technology into everything they do. If a ConnectOne client is applying for a loan and prefers to meet in person, they can still come to our bank offices to meet, have a cup of coffee, use our tech bar and discuss their loan. However, because our lending operations are moving to the cloud, the entire process for this client will be more streamlined and efficient than ever before. All of the information surrounding the loan will be easily accessible to the client and bank employees on a single secure platform, making life easier for clients whether they are technologically savvy or not.

The main takeaway here isn’t that digital platforms will replace physical businesses or banks, but that technology should be integrated seamlessly to improve customer satisfaction and ultimately enable business growth.

It’s no longer enough to dip your toe in the water  bankers and small business owners alike need to fully jump in and embrace the tools of the future. Start playing offense again – your clients and consumers will reward you.