What do Startups REALLY Want from Banks?
- 5 Comments
- November 21st, 2008
Today’s startups and early-stage small businesses want a helping hand to make banking as inexpensive and as easy as possible in the early years. The early years are when they can least afford bank fees.
Today’s startup entrepreneurs are technologically savvy and have a tendency to conduct transactions online. So they expect online banking capability and they expect it to be free.
They also tend to use credit cards more than traditional loans or credit lines in the early years. Consequently, they may need to be educated on the benefits of having a separate business credit card. The discussion about credit cards should be more than an after-thought, if you want to convince them to go for your card, or they will simply default to using their personal card or respond to the first attractive direct mail offer that comes their way.
Oh — and with the availability of the Internet, these young pups have the ability to shop around, even outside of their local communities. They have plenty of options (translation: your competition). So you need to do more than ever to satisfy their needs — because if you aren’t, your competitors are.
A few weeks ago I contributed an article to the Deluxe Knowledge Quarterly, a print publication by the Deluxe Financial Corporation that goes to all its customers (banks, community banks and credit unions). This article looks at the services that banks provide from the perspective of startups, suggesting that if financial institutions give young businesses of today what they need, those young businesses and startups may become customers for life. The article was published under the title “Get Them Early, Keep Them for Decades.”
I’ve loaded it over at Slideshare. You can view it in the viewer below, or download a copy of “Get Them Early, Keep Them for Decades” (PDF).
Financial institutions, please let me know what you think. Startups, what else should I have covered that you need from your bank but are not getting? Weigh in!