Businesses’ attitudes towards their relationships with banks and financial institutions are evolving. The days of a single-bank relationship are dwindling as research from the data insights platform, Codat reveals nearly seven in 10 firms (68 per cent) now work with multiple banks.
The research from Codat found that of the 500 mid-sized firms surveyed, those earning between $10million and $1billion, 68 per cent now work with more banks than they did three to five years ago. Further stats showcasing the change to ‘polybanking’ can also be seen by the fact that 50 per cent of firms now work with three or more banks.
One primary reason for this is technology emerging as a top differentiator. Bank of America and JP Morgan Chase came out as the primary banks for most businesses, but their competitive advantage isn’t just customer service—it’s technology. Roughly one-third (33 per cent) of finance leaders say advanced online features are their top priority when choosing a banking partner.
“Half of mid-market companies work with three or more banks, with many also engaging lenders, fintechs, or neobanks,” said Joey Rault, chief revenue officer at Codat. “Banks aren’t just competing with their clients’ existing financial partners—they’re also fending off new challengers constantly vying for a foothold. To secure primacy in the mid-market, they must offer not only comprehensive financial solutions but also deeply personalised service that strengthens loyalty and sets them apart.”
Filling in the gap left by traditional banks
Despite the dominance of major banks, businesses are sourcing just 63 per cent of their financial services from their primary institution, highlighting an increasing reliance on alternative providers. More than a third (37 per cent) of mid-sized businesses are now engaging with fintechs or neobanks to fill gaps left by traditional banks.
As businesses increasingly rely on cloud-based apps for a comprehensive view of their financial health, they are becoming more willing to share their data in exchange for smarter, more tailored financial services.
Over half (53 per cent) of businesses surveyed are open to the idea of granting banks continuous access to their financial data—provided security measures are robust. Trust remains overwhelmingly high, with 99.6 per cent of businesses stating they trust banks with their financial data, offering traditional players an opportunity to reinforce relationships before fintech competitors take a larger share.
