Too Many Tools, Not Enough Bank: The SMB Need for Functional Consolidation

This white paper explores how small and midsize businesses are managing a fragmented mix of financial tools beyond their primary bank, and what that means for financial institutions competing for wallet share, loyalty and growth.

Based on Q1 2026 Datos Insights research, it shows why consolidation, real-time payments and integrated cash management capabilities are becoming critical to winning and retaining SMB relationships.

Key findings:

• SMBs spend far more across all financial tools than their primary bank typically sees
• Fragmented platforms create operational friction, manual work and switching risk
• Most SMBs would pay more for simpler, integrated financial management experiences
• Real-time payments and unified tools are emerging as key differentiators for financial institutions
• The research reveals clear product and retention implications for banks and credit unions