The news: BMO is rolling out a new online business banking platform and digital experience for small and medium-sized businesses (SMBs) and middle-market clients. The updates improve usability and efficiency, including a new interface for account management, payments, and cash flow management; better navigation; and consolidated financial data.

Trendspotting: Last April, U.S. Bank introduced a new small-business platform and checking account to meet SMB demand for a single solution for banking, payments, and operations, including entitlements and expense management. Wells Fargo made similar improvements last year, and JPMorgan Chase just announced a major community investment initiative. Community banks are already well-known for their focus on local businesses, though their digital services are relatively weak.

Implications for banks: SMBs are a huge segment, but banks overall have lagged fintechs in developing modern business banking products and services. Accounting platforms like Quickbooks have integrated banking services, while fintech SMB spend management providers have evolved into midmarket treasury management platforms with built-in banking. SMBs now expect not only modern, consumer-grade experiences, but also enterprise-grade tools. These have trickled down to SMBs through third-party products and services. 

The gap between SMB treasury management and retail banking is now closing quickly. Capital One acquired business banking and corporate finance fintech Brex this year, in a bid to catch up. What was once a fragmented, inferior experience—reliant on third-party tools and manual support—is being replaced by integrated, digital-first solutions. As both incumbents and new entrants compete aggressively for SMBs, modern capabilities have become table stakes.

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