There are more than 25 million small businesses in the U.S. and 21 percent say they have no formal banking relationship. That represents an opportunity for banks, who given the right technology and product set can upgrade business owners using personal accounts for business expenses into small business customers. "There's just a huge opportunity here. Nine in 10 (small businesses) are sole proprietors which will grow into larger businesses, but banks don't have a strategy around it," says Brad Strothcamp, principal analyst at Forrester Research, whose recent report, "The State of U.S. Small Business Banking," examined the issue. Strothcamp points to vendors like Intuit, whose personal financial management tools allow personal account holders to classify expenses as "business," as offering banks an easy way to spot potential crossover accounts. Other account analytics can also be employed to identify these potential business customers in the retail base.
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The Philadelphia-based bank's parent company, Republic First Bancshares, had been roiled by a yearslong proxy battle involving activist investors groups and its former CEO.
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The Wyoming-based digital asset bank filed paperwork to challenge last month's district court ruling, which affirmed the Federal Reserve's view about its discretion over master account applications.
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The former head of the Consumer Financial Protection Bureau resigned Friday after the troubled rollout of the Free Application for Federal Student Aid led some House Republicans to call for his resignation.
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The San Antonio-based bank said that loan growth, fueled in part by its expansion in key Texas markets, may compensate for pressure on deposits. It slashed the number of rate cuts it expects this year from five to two.
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Mississippi's Renasant names its next CEO; environmental fintech Aspiration Partners spins out its consumer brand; the OCC adds five weeks to comment period for Capital One-Discover merger; and more in the weekly banking news roundup.
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The Wisconsin banking company forecasted loan growth of 4% to 6% for the full year, driven by an expansion into new commercial and consumer credit lines as well as enduring economic strength in the Midwest.
April 26