Why Financial Institutions Must Prioritize Seamless User Experiences for Small Businesses

This article was originally published on Forbes through the Young Entrepreneur Council (YEC), where Suneera Madhani shares insights as a member.

User Experience in Financial Services

User experience has seen a transformation for individual consumers. The user experience is now expected to be faster, more personalized, and entirely digital. But small and medium-sized businesses (SMBs), which make up a significant portion of the global economy ( 44 percent of the US economic activity , to be exact), have been left behind, stuck navigating slow, cumbersome onboarding and credit processes. This gap between the consumer experience and the SMB experience has created a major obstacle, not just for SMBs, but for the financial institutions serving them.

As SMBs continue to grow, financial services must evolve to meet their needs.

The Growing Importance of SMBs in the Global Economy

SMBs are the backbone of the economy, contributing to employment, innovation, and economic growth. According to recent statistics, there are more than 30 million SMBs in the U.S. alone, accounting for 99.9 percent of all businesses and employing nearly half of the private workforce. Globally, SMBs represent more than 90% of businesses and contribute significantly to GDP in both developed and developing economies.

Despite their importance, SMBs face considerable challenges when it comes to accessing financial services. Research shows that 60 percent of SMBs report struggling with funding and cash flow , often due to cumbersome, outdated onboarding and underwriting processes. Unlike consumers, who can open a bank account or apply for a credit card in minutes, SMBs are left waiting for weeks, navigating complex compliance checks and manual paperwork.

This disconnect isn’t just an inconvenience, it limits the potential for SMBs to grow, thrive, and drive the economy forward. Financial institutions that don’t prioritize improving the SMB experience risk falling behind in a world where seamless, digital-first interactions have become the norm.