TAMPA, Fla.—Credit unions have a significant opportunity to expand relationships with small and medium-sized businesses, but many are failing to keep pace as business needs become more sophisticated, according to Velera’s sixth annual Credit Union Growth Outlook.
The study found 86% of SMBs use multiple banking partners, relying on an average of nearly three financial institutions to meet their business banking needs. While credit unions remain competitive among micro and small businesses because of their personalized service, transparent pricing and local connections, many growing companies ultimately migrate to larger financial institutions as their needs become more complex.
Velera said the findings point to a largely untapped growth opportunity for credit unions that can deliver the digital capabilities, payments solutions, access to credit and specialized services SMBs increasingly expect as they expand. The report suggests credit unions that successfully evolve their business offerings could deepen relationships with existing business members and capture a larger share of the SMB market.
“Small businesses represent a powerful growth opportunity for credit unions that approach this audience with intention,” said Velera Chief Marketing & Communications Officer Tom Pierce. “This year’s CU Growth Outlook underscores that SMB banking cannot simply mirror consumer banking. Credit unions that pair their strengths in service, trust and community with the digital tools, payment offerings and credit capabilities growing businesses expect will be best positioned to earn a larger share of the SMB relationship and drive long-term growth.”
Key findings from this year’s study include:
- Credit unions are well-positioned to serve micro and small businesses: Micro and small businesses prioritize low and transparent fees, quality customer service and access to credit – areas credit unions can leverage as core strengths. The study found these businesses are also more likely to use their primary financial institution for deposits, expenses and holding excess cash or savings.
- SMB needs become more complex as businesses grow: As firms scale from micro and small businesses to lower middle market businesses, their needs shift toward more sophisticated business-specific solutions. According to the study, lower middle market businesses are more likely to use their primary financial institution for business credit cards, payment processing, payroll services and financial advisory support.
- Payments and credit issues directly impact business operations: One in three SMBs say payment and credit issues have a significant impact on their ability to maintain consistent cash flow and invest in growth. These challenges are even more pronounced among lower middle market businesses, with 39% saying these issues affect their ability to invest in growth and 43% saying they affect their ability to serve members effectively.
- Digital capabilities and security are now table stakes: SMBs expect seamless digital experiences, convenient access across channels and strong security and fraud protection. For lower middle market businesses specifically, security and fraud protection are the top factors in choosing a financial institution.
- Service remains a key differentiator for credit unions: While SMBs increasingly expect more robust business banking capabilities, credit unions can differentiate themselves through personal service, practical guidance and relationship-based support – particularly as business owners look for financial partners that can grow alongside them.
The study also outlines recommendations and considerations for credit unions as they look to compete more effectively for SMB relationships, including leading with payments, leaning into core strengths, supporting SMB credit needs and engaging early and often to deepen relationships over time.
The 2026 Credit Union Growth Outlook was conducted in partnership with Visa and surveyed 600 U.S. small- and medium-sized business owners and decision makers. The audience was evenly split, with 300 respondents from micro and small businesses with less than $10 million in annual revenue, and 300 respondents from lower middle market businesses with $10 million to $50 million in annual revenue. All participants were 21 years of age or older, with a mix of gender and age groups.
The 2026 Credit Union Growth Outlook white paper is available for download on the Velera website.