In Curinos’ most recent round of small business research, we see that a burgeoning number of business owners consider non-bank providers their primary financial institution. The increase has been more than 4x in only five years.
Percent of SMBs with Non-bank Relationships
Source: Curinos Small Business Research 2021, 2023, 2026
What’s behind it? Fintechs have historically focused on targeted profit pools within the small business ecosystem (e.g., merchant services, lending), competing on a narrow slice of the relationship rather than all of it. That's changing. Many are now expanding well beyond what they’ve originally offered, and as they do, they're achieving primary relationship status at the expense of traditional banks.
And the situation will only get worse. Because some of them are seeking banking charters, they’ll be able to further expand their offerings with a focus on deposits and the small business operating account.
What does it mean for incumbent banks? Advice and trust built over years of relationship banking are real advantages, but they no longer hold up on their own. To defend primary status, banks will need to continue to pair that historical strength with the product breadth and digital experience many small business owners now expect as table stakes, not differentiators.
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