US Bank's 'essentials' for SMBs responsive to pre-tariff survey

As reported yesterday, U.S. Bank, parent of leading acquirer Elavon, launched an all-in-one checking account tethered to payment acceptance capabilities for small businesses. U.S. Bank Business Essentials makes it possible for small businesses to accept card payments with free same-day access to their funds, and a free mobile card reader for new accounts, in addition to checking with unlimited digital transactions and no monthly maintenance fees.

U.S. Bank said it introduced Business Essentials in response to the advancing needs and demands of small business clients. In a national survey, the bank conducted with more than 1,000 small business owners, 80 percent said they prefer service providers that can bundle their digital banking, payments and operations tools. In other words, a banking partner that can bundle digital banking, payments and operations tools in a single solution.

"With Business Essentials, we are making it easier for small business owners to manger their business," said Shruti Patel, chief product officer for the business banking segment at U.S. Bank.

"We are bringing multiple capabilities together – a best-n-class checking account with payments and differentiated easy-to-use software – in a single integrated interface. By enabling small business owners to manage their cash flow in one place – with no monthly maintenance fee – we are helping our clients save time and money, lessening their operational burden, and giving them access to improved business insights."

"This product exemplifies how the breadth of business offerings under the U.S. Bank umbrellas can interconnect to create real value for our clients," said Arijit Roy, head of consumer and business banking products at U.S. Bank. "When we make it easier for our small business clients to run their businesses and have quicker access to their funds, we are playing a central role in their growth story."

Small business optimism?

In is worth noting that the U.S. Bank survey, while it indicated substantial optimism, was taken prior to the tariff war commencing. It revealed that small business owners and their employees were optimistic about the future of their businesses. Nearly nine in 10 owners reported feeling optimistic towards the future of their businesses.

A majority (73 percent) of small businesses have grown in the past year, despite more than half reporting labor challenges. In fact, more than half (52 percent) of business owners said they were understaffed.

Understanding that many small business employees value the frequency of paychecks and digital solutions, owners are offering more flexible payroll options. Better than three out of four (76 percent) of small business employees say that being paid when they want to be is very important to their success at work, and just over seven in 10 (71 percent) of owners said they want to be able to offer more flexible payment options for their employees.

Where banks can help

A large majority of small business owners (80 percent) say they prefer service providers who can bundle banking, payment and operational digital tools they need, and prefer their bank provide them with digital solutions for banking payments and other administrative tasks.

There is a significant opportunity for banks to provide help in consolidating solutions, the survey found, as 57 percent of owners say they are overwhelmed by the number of digital solutions they need to run their businesses.

Additional survey highlights

Seventy-three percent of small business owners say competition ranks in their top five stressors. The economic environment was close behind at 71 percent. Supply chain disruptions were cited by fewer than half (47 percent) of small business owners.

Thirteen percent of younger owners say competition from larger businesses ranks as their number one stressor.

Thirty-one percent of business owners ranked the political environment among their top five stressors.

Small business owners see the benefits of digital tools, including AI and automation. And while small business employees agree, there is a lack of clarity on how automation will change their jobs.

Nearly seven in 10 (68 percent) of owners specifically think AI and automated solutions (e.g.: ChatGTP, automated chat boxes, etc.) are beneficial. Fully half of owners and employees who indicate their businesses do not have AI and automated solutions see them as beneficial. Still, one in four employees are worried their jobs could be replaced by AI and automated tools. Gen Z and Millennial small business employees are especially worried, the survey found.

Owners view tools such as payment processing and merchant services solutions and accounts payable/accounts receivable solutions as the most essential and beneficial. These solutions are also the most widely adopted. Yet, nearly a quarter (23 percent) of owners say they do not yet have any A/P A/R solutions.

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