So, what’s going on in the economic world right now? Oh, just a little bit of everything: alarming interest rates, inflation, a presidential transition, international political upheaval, skyrocketing debt, stressed-out consumers, and a labor market that can’t seem to decide what it wants to be … you know, just your average Tuesday (hopefully the sarcasm is coming through here). If you’re in banking, none of this is news to you. But if you consider yourself a great banker, then you know that staying ahead of the curve is more important than ever. It’s not just about knowing what’s happening in the economy — it’s about understanding the impact on your clients and adapting to an ever-changing landscape.
As banks gear up for the future, the buzzwords are everywhere: “pivot,” “adapt,” “overcome.” Whether it’s leveraging AI tools or tackling the eternal challenge of growing deposits, the pressure is on. But in a world where change happens at breakneck speed, one thing is certain: While we can’t predict the future, we can certainly prepare for it. And preparation starts with knowledge. For our team, that means making Barlow Research Associate’s annual Business Banking Conference an essential stop on the roadmap.
What’s the Fed saying?
Going into 2025, the economy is sitting in a good spot, according to many analysts. Matthew Martin, regional executive at the Federal Reserve Bank of Richmond, says that recent data, including Q3 GDP, reinforces that U.S. economic growth is solid overall.
Among the notable data points, the labor markets are looking more balanced, and moderating wage growth is more in line with the Fed’s inflation target of 2%, but the path is bumpy, and there are some headwinds.
For starters, monthly job gains have been trending lower. The unemployment rate in October clocked in at 4.1%. This could be attributed to various labor union strikes and the hurricanes that have impacted significant parts of the Southeastern United States.
As for the economic tailwinds, consumer spending and household wealth appear to be up! This is optimistic news for the economy, especially considering that consumer spending represents nearly 68% of the nation’s GDP.
How about you, dear reader? Do you know how your local economy is doing? Great bankers know that to understand what drives the success of a local company, it’s not enough to just know the economic landscape at the national level — or even the state level. Trusted advisors need to understand what is going on within your clients’ industries at the MSA or county level.
If you read nothing else in this blog post, read this:
No, this isn’t a clickbait paragraph. I’m only sharing one of the most important insights shared from the entire Barlow conference!
Truist’s 2024 annual small business owners survey found that small business owners feel less confident than ever. They are less confident in the U.S. economy, their local economy, and their business prospects.
Eddie Lopez, head of the small business client journey at Truist, shared that 57% of surveyed small business owners responded that they are somewhat or extremely stressed — up from 47% in 2022. Things keeping them up at night include rising costs, inflation, economic uncertainty, finding new customers, and generating sufficient cash flow.
One thing is clear: Business owners could use some help. The question is, how can you, as a small business banker — as a trusted advisor — alleviate some of these pain points for your clients? And you might also be wondering: What’s in it for you?
To Eddie and the Truist team, the key to supporting small business owners starts with “getting the brilliant basics right.” Almost every presenter mentioned prioritizing a “seamless client experience,” meaning that clients have the freedom to self-service and bank themselves, but they should always have the easy option to access a human customer service team.
And what’s in it for you if you and your team nail this experience? Just ask a small business owner herself …
The financial journey of an entrepreneur
Maya Angelou once said, “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Two-time entrepreneur Emily Green smiled as she read this quote out to the conference audience.
Having successfully started two businesses and sold one of them, Emily knows a thing or two about the entrepreneurial journey — and the financial support that’s needed. One of the most significant things that she shared, which impacted who exactly she banked with, was who was “there” for her at pivotal moments in her life. It turns out that the bank that got in front of her at 18 when she was entering college was the first bank she turned to for a small business loan.
“Small business owners are loyal,” Green said. “If you’re there for them when they need you, you’ll have a client for life.”
To this point, Emily stressed the importance of getting in front of business owners before they have a need. In other words, banks that had prepared and anticipated that she might need a business loan were the ones on her short list to give a call. It’s also the providers that check in often before any trigger events take place (client gains and losses, team growth, expansion into new markets, etc.) that earn the trust and business of these owners.
Other factors that stood out to Emily when choosing a loan provider included: convenience, ability to grow with her company, and authenticity. Green smiled and said, “Understand the journey and invest in an owners’ dreams, not just their finances. Show owners that you truly care about them and want to help them succeed!”
Caring about clients and the communities they serve is nothing new to banks. Many banks in our home state of North Carolina have stepped up in the weeks following Hurricane Helene to help pick up the pieces and get communities back up on their feet.
Your family, friends, and neighbors are truly at the core of everything your institution does, and it’s important to remember that.
Empowerment means meeting clients where they are
Surprise, surprise! In 2025, tech is everything. Barlow Research Associates found that the percentage of monthly touches to the banking branch has decreased while those to the mobile banking app increased. With more than half of small business owners under age 65 using mobile banking, it’s clear that digital solutions aren’t just a trend — they’re a necessity. If your institution isn’t already embracing digital, it should be.
This shift makes perfect sense for small business owners, who often view their business as a 24/7 commitment. They don’t “switch off” at 5:00 PM when banks close. Whether it’s midnight or midday, they’re thinking about their business and employees and need seamless, omnichannel solutions that allow them to access banking services whenever they need them.
Trust will always be the name of the game
Kristen Link, a product manager at U.S. Bank, put it perfectly: “Trust comes on the back of the tortoise and leaves on the back of the hare.” While it’s important for institutions to adapt and evolve to meet client needs, these changes must be made thoughtfully and with care. Leaders must always keep customers’ trust in mind when making decisions.
When it comes to business success, we often hear the mantra “fail fast,” but a more effective approach is to “learn quickly.” Moving too quickly can lead to costly mistakes and the loss of long-term clients. In the business banking world, slow and steady wins the race, and gradual, thoughtful progress builds lasting trust. On your marks, get set, go (slowly)!
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