There is a huge opportunity for credit unions to better serve small- to medium-sized, very profitable local businesses. Understanding that these businesses need both deposit and lending assistance, more credit unions are striving to expand their member business services and improve how they attract this segment of the market. Focusing more heavily on the needs of local businesses presents a unique opportunity for credit unions for two simple reasons: First, many credit unions already have a significant number of small business relationships, and second, small businesses have historically felt neglected by the financial services world and are starving for attention typically given to retail and commercial segments.

Small businesses have become a strong target market for credit unions. They're profitable, tend to have personal share accounts as well as business accounts, and are loyal. If a credit union determines how to best serve this blended personal and business segment, they can hit a home run and generate considerable deposit and lending growth. Credit unions, which are already strong in local brand and known for a "relationship" focus, can be the savior of local businesses in significant need of specialized services.

Typically, small businesses default to the retail side of their financial institution, which is not big enough for corporate bankers and misunderstood by retail banking executives. Even the internet and mobile banking vendors have somewhat overlooked small businesses. When businesses remain on retail/consumer platforms, they usually avoid fees but are underserved.