The Shift Is On: What the Data Says About Business Bank Switching

Let’s be honest – businesses don’t switch banks for fun. It’s a hassle. There’s paperwork, integrations, payroll systems, and all kinds of dependencies to untangle. But lately? More and more small and midsize businesses are starting to make the jump. They’re frustrated with outdated tools, hard-to-reach bankers, and the feeling that their current bank just isn’t built for how they operate today.

So what’s really driving these moves – and what makes one bank stand out from the next? We pulled together the most eye-opening stats from industry research to help answer that. And if you’re trying to win over more business customers, this data might be exactly what you need to think differently.

SMB Bank Switching in the U.S.

• 15% of small and midsize businesses in the U.S. switched banks in 2024 – a noticeable jump from the typical 10%.
• And it’s not just the ones who’ve already moved – 35% are actively considering a switch or adding a new banking relationship.
• One of the biggest red flags for them? Poor digital capabilities. In fact, 30% say weak tech is what pushed them to leave.
• A lack of follow-up and general service frustrations are right behind that.

SBA Lending: When the Product Is the Same, the Experience Wins

• In 2023, the SBA approved over 57,000 7(a) loans—totaling $27 billion. These loans come from all kinds of banks and fintechs, but the terms? Pretty much identical.
• Still, 60% of SBA applicants compared multiple lenders online, even though most already had a business bank account somewhere else.
• Here’s the kicker: about half of SBA loan applications get abandoned, usually because the process is too slow or confusing.

Business Concern About Bank Health and Longevity

• A National Federation of Independent Business (NFIB) survey found that 40% of small business owners were very or moderately concerned about the financial health of their bank.
• That concern jumped to 70% after SVB and Signature’s collapse, with nearly two-thirds of small businesses using regional banks reporting at least slight worries about their deposit safety.
• A 2024 survey of corporate finance leaders revealed that 90% cited concerns about bank safety, and 77% would accept lower returns just for deposit assurance.
• Meanwhile, 29% of bank customers overall are “very concerned” about U.S. banking system stability – and that climbs to 34% among those aware of recent bank failures.

Final Thoughts

Business banking is shifting. Companies aren’t just staying put anymore – they’re asking harder questions, exploring their options, and looking for signals that their bank is built for the long haul. Whether they’re reacting to a crisis, frustrated by bad tech, or unsure about the stability of their current institution, more businesses are reaching a tipping point.

That means the bar is higher than ever – but so is the opportunity. If you can reduce friction, offer confidence from day one, and show that you’re both modern and resilient, you’re not just getting a new customer. You’re earning long-term trust at a moment when it matters most.

That’s exactly the challenge Onsetto is built to solve – helping financial institutions become the easiest bank to switch to, and the hardest to leave.