Independent Banker - April 2022 - 30

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PORTFOLIO INNOVATION STATION
serve. The natural evolution of a growing
economy for many small businesses
often surfaces in their staffi ng needs. If
a small business has fi ve employees, it
will likely use Excel or Quicken for its
payroll needs. But once the number of
employees nears 50, payroll becomes
more complex, creating an opportunity
for community banks to play an advisory
role in helping them identify how, when
and where their businesses need to grow
and then off ering additional services and
products to meet their needs.
Growing small
business banking
By Charles Potts, ICBA
mall businesses are the backbone
of the U.S. economy, accounting
for 99% of companies with paid
employees and 65% of net job creation
from 2000 to 2017, according to the
Small Business Administration (SBA).
Small businesses also lead the
way in innovation. As small business
operators and innovators themselves,
community bankers have the
gumption and vision to deliver the
high-tech, high-touch services their
customers want, and need, to succeed.
Not only did community banks step
up as outsized Paycheck Protection
Program lenders during the height
of the pandemic, but they continue
to leverage technology to meet small
businesses' need and desire for
frictionless, digital solutions.
For those not as far in their
innovation journey, I often suggest
starting with an inventory of
your existing solution providers,
partnerships, tools and capabilities,
which will serve as a baseline
assessment. Next, consider your bank's
S
critical strategy, that three-to-fi ve-year
plan that details your business goals
and objectives. From there, conduct
a gap analysis, working your way
down to the top of the priority list,
identifying tactical next steps.
Finding opportunities
Staying attuned to small business
customers' strategic plans is also
critical to identifying gaps in your
business solution off erings. Knowing
where businesses are headed can help
you off er products and services to
support their business growth as well.
In addition, an obvious need for
most small businesses is payments.
Consider ways to help your customer
improve its cash fl ow and expand its
payment options. Look at ways to
facilitate payables and receivables
transactions. These are natural next
steps for community banks interested
in extending their services beyond
business loans and lines of credit.
Consider, too, the lifecycle
evolution for the businesses you
Say you're considering adding a digital
account opening solution to your small
business off erings. Looking to ICBA's
Preferred Service Provider Directory
(icba.org/solutions) and the ThinkTECH
Network Solutions Directory (icba.org/
thinktech) to meet the evolving needs of
small businesses are logical next steps.
And of course, communing with
community bank colleagues, at
events like ICBA LIVE or through
Community Banker University's
extensive educational resources, is
helpful. ICBA's member relationship
offi cers can also help you make critical
connections with community bankers in
similar circumstances willing to share
experiences and lessons learned.
We live in unprecedented times, fi lled
with new challenges and opportunities.
Fortunately, community banks have
greater access than ever before to
advanced solutions and technologies
to meet those needs. The resources,
partnerships and providers available
to community banks through ICBA can
help community banks compete with the
largest and most technologically advanced
banks and fi ntechs on the planet today.
Make the most of the opportunity. 
Charles Potts (charles.potts@icba.org)
is ICBA executive vice president and
chief innovation off icer
28 Q ICBA Independent Banker Q April 2022
http://www.icba.org/solutions http://www.icba.org/
Independent Banker - April 2022

Table of Contents for the Digital Edition of Independent Banker - April 2022
