Primax Study Found Diversified Small Business Banking
A new research report from Primax reveals that small businesses frequently rely on multiple financial institutions.
Updated on Sept. 27, 2026 in Financial Services
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Eighty-six percent of small and medium-sized businesses now work with more than one banking provider, according to a recent Primax study. These firms use an average of 2.8 financial institutions to manage their accounts and credit needs.
Why it matters
As businesses grow, they require more complex products like treasury management and payroll services that regional or national banks are often better equipped to provide. One in three businesses report that existing payment and credit challenges negatively impact their overall cash flow and investment capabilities.
The study surveyed 600 decision-makers and found that 39% of lower middle market businesses face payment and credit challenges. Meanwhile, 53% of all surveyed businesses continue to use the same institution for both personal and business banking.
The players
Primax
A financial services organization based in Tampa that provides research and strategic support for banks.
Visa
A global payments technology company that partnered with Primax to conduct this research study.
The details
The report, conducted in partnership with Visa, highlights how businesses scale their demand for sophisticated financial advisory services as they evolve. It notes that lifecycle dynamics serve as the primary driver for firms transitioning into the lower middle market.
Timeline
Lenders must begin reporting small business loan application data under the Section 1071 rule in 2026.
Market Landscape
This research reflects a broader industry shift toward specialized financial management as firms navigate the regulatory requirements of the Section 1071 rule. The findings highlight a competitive environment where banks must now compete to secure high-growth business customers against diverse institutional alternatives.
Business owners may find that diversifying their banking relationships provides access to more specialized treasury and advisory tools necessary for scaling. However, relying on multiple providers may increase administrative complexity and complicate efforts to streamline cash flow management.
The takeaway
Business owners should regularly evaluate whether their current banking portfolio aligns with their evolving needs for complex financial products. Leveraging specialized providers for treasury and payroll may help mitigate the cash flow challenges currently faced by many firms.
What happens next
Lenders across the country will begin the mandatory reporting of small business loan application data in 2026 as required by the Section 1071 rule.
Further reading
For broader context on the industry, visit the Financial Services section.
Source note: This article includes information reported by The Fintech Times.
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