Choice, checks, trust: What small businesses want from their banks

Each business banking client is unique with their own wants and needs. When banks fail to meet those marks, they risk damaging or even losing the relationship. Even with today’s saturation of digital payments, force-fitting modernization where it isn’t asked for can hurt the trust small businesses have with their financial institutions.

New survey findings from Deluxe, paired with recent small-business banking research shared by Barlow Research, point to small businesses needing more hands-on support from their bank. With little time, money or bandwidth, how banks support their business clients’ payment workflows — including checks — can either reinforce trust or create friction.

Survey says: Small businesses still value checks

Everyone in the payments space has heard the refrain “Checks are dying.” Yet when we listen to businesses themselves, we hear something different. Checks persist not because business owners are stuck in the past, but because checks still solve practical problems around documentation, control, vendor acceptance and familiarity.

In a survey of almost 500 Deluxe business check customers, respondents said paper checks still represent 55 percent of their organizations’ payments, far ahead of credit cards (21 percent) and ACH/debit (21 percent). Checks remain a core operating tool for many businesses, especially those running lean and balancing multiple priorities.

Businesses are writing checks frequently and consistently

When asked how many paper checks they write in a typical month, most respondents are writing far more than a handful:

• 20 percent write 26–50 checks per month
• 19 percent write 51–200 checks per month
• 18 percent write 16–25 checks per month
• Only 1 percent write none

This means that for many small businesses, checks are a repeated beat in the rhythm of the AP process.

Why checks? recordkeeping, convenience and vendor preference

When we asked why businesses choose paper checks for payments, 65 percent cited recordkeeping as a main driver. Small businesses (defined as $100K to $10M in sales) are typically established and time-starved, meaning it’s often the owner’s responsibility to handle the finances. In the absence of a dedicated finance team, business owners need traceability and clarity in their payments.

Another stand out that banks should consider is that 32 percent noted vendor preference as a primary factor for keeping checks in the mix. Vendor ecosystems still drive behavior, and even when a small business is ready to pay digitally, suppliers may not be. Essentially, keeping vendors happy keeps small businesses happy, and at this moment, that can’t happen without the check.

Small businesses want it all: Digital, traditional, human

In a recent presentation on small business banking behavior, Barlow Research, a firm specializing in the “voice of the business customer,” emphasized something banks have been wrestling with for years: Small businesses are becoming increasingly digital, but they don’t want to be restricted to digital-only.

Branch vs. digital

Whether online or in person, these businesses interact with their bank frequently, some more than once per business day on average. But many still prefer going to a bank branch for “important activities,” even though their use of online and mobile channels is steadily increasing. According to the Deluxe survey, when it comes to depositing incoming checks, the dominant method was not digital:

• 76 percent deposit at the branch or drive-thru
• 21 percent use remote deposit capture
• 13 percent use mobile deposit

For bankers, this is a major signal: the branch experience and deposit workflow still shape how business customers perceive the relationship, especially among smaller firms.

Proactivity beats responsiveness

Another observation from Barlow’s research highlights a relationship challenge: small businesses don’t automatically see bankers as their first source of advice; accountants, peers and even Google outranked banks. While they are satisfied with their bank (a reported 73 percent), the relationship between banks and their small business clients has room to deepen. To advance the relationship, trust has to be earned through consistency, accessibility and follow-through.

In practice, that means fast response times are table stakes, and proactive outreach (even just a few times per year) helps materially improve relationship depth and future product consideration.

What this means for business banking leaders

Checks can feel like an operational detail. But in many institutions, check-related moments are also relationship moments: onboarding, deposits, exceptions, disputes, fraud concerns, ordering and reordering, fee questions and service interactions.

Reflecting on Barlow’s research and responses from business check users, here are a few takeaways for banks:

1. Don’t treat check workflows as old school

If checks still represent a major share of payments for your customers, then check ordering, depositing, reconciliation support and exception handling should be designed like any other core banking journey.

2. Make “value for every penny” visible in pricing conversations

Small businesses are fee-sensitive, and pricing pressure can fuel switching risk. When fee reduction isn’t an option, it’s critical that bankers explain value clearly to avoid surprise friction and eroding trust.

3. Support the branch channel while modernizing behind the scenes

With three-quarters of surveyed businesses still depositing checks at the branch, investments in teller tools, processing efficiency and deposit experience are still a requirement.

4. Use proactive service to strengthen wallet share over time

Business customers may be satisfied and still not refer — or they may be satisfied and still switch when pressure rises. Proactive relationship management helps banks stay relevant before a competitor becomes the “next best option.”

Small businesses banking: Think connection, not either/or

Business banking is ever evolving, but the shift from paper to digital isn’t a straight-forward path. This audience wants payment tools that work and people who show up when it matters. Checks are one of the clearest reminders of that balance. When banks treat check experiences as part of today’s business relationship strategy, it only helps strengthens trust.