The Power of Business and Commercial Cards for Community Banks

The research conducted by BAI highlights the increasing competition for consumer deposits in the banking industry.

Nearly two-thirds of bankers report experiencing this heightened competition, a stark rise from 37% in 2021. To stand out in this challenging environment, community banks must find innovative ways to differentiate themselves for deposit growth.

However, amidst this challenging environment, there is a silver lining that community banks can capitalize on. The same BAI research found that a staggering 79% of business owners use the same financial services organization for personal and business financial needs. This presents an exceptional opportunity for community banks to leverage their local presence and close-knit relationships within their communities. Providing comprehensive business and commercial card programs gives community banks a way to establish themselves as trusted financial partners for their small business and commercial customers.

Business and commercial cards play a pivotal role in enabling the growth and financial stability of businesses. These revolving credit and charge card products offer companies the means to efficiently manage their finances. Community banks can cater to a diverse range of customer preferences by providing tailored solutions for credit cards that align with the needs of their customers. Unique solutions include:

• Low APR options.
• Flexible reward programs.
• User-friendly interfaces.
• Local servicing.

By ensuring that these cards are equipped with features such as risk-based APRs and customizable credit lines, community banks enhance their customers’ ability to navigate their financial landscape with confidence. Personalized solutions position community banks as trusted advisors, empowering businesses to flourish and paving the way for enhanced deposit growth.

Community banks have the opportunity to invest in themselves to add value to their business customers by launching a comprehensive credit card program – without hiring staff or investing in infrastructure to offer their business customers all the digital capabilities on credit cards to meet the demands of modern business. Business admin interfaces can enable business administrators at companies to be in control at all times. They gain the power to issue physical, virtual and ghost cards, set credit limits on each card, implement spend controls, receive real-time alerts, manage expense reporting and access customizable reports.

In the fiercely competitive landscape of modern banking, community banks have a unique opportunity to drive deposit growth by offering comprehensive business and commercial card programs. By leveraging their local presence and close customer relationships, community banks can position themselves as trusted financial partners of small businesses and commercial clients by offering this much-needed modern and innovative solution.