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Business Banking in 2023

Have Recent Collapses Shaken Business Owners’ Confidence in Banks?

Updated: June 10, 2024
Business Banking Confidence

In light of recent bank failures, many American business owners may wonder if their funds are safe. To get a reading on their banking habits, we surveyed over 700 of them across multiple industries about where they bank and how they’d fare in a similar crisis. Our findings will help you understand the current risks as well as how (and if) businesses are preparing.

Business banking confidence data

Key Takeaways

  • Recent bank collapses have impacted nearly 1 in 15 business owners.
  • Since these collapses, 43% of business owners are now less willing to work with new bank partners.
  • The top 3 actions of the 18% of business owners who are diversifying are:
    • Keeping cash reserves on hand (67%)
    • Using alternative banking methods (62%)
    • Investing in stocks and bonds (60%)
  • The top 5 reasons business owners aren’t diversifying are:
    • Happy with their current banking arrangements (68%)
    • Believe recent bank collapses are isolated incidents (22%)
    • Funds already diversified (21%)
    • Don’t know of or understand alternative options (18%)
    • Concerns about the safety or security of alternative options (14%)
  • 31% of business owners believe they would last more than a year if faced with a financial crisis, followed by 23% who said they’d last 6-12 months.
  • Percentage of business owners who said they would only last three months or less if they faced a financial crisis, by industry:
    • Hospitality: 36%
    • Education: 29%
    • Health care: 27%
    • Retail: 25%
    • Technology: 24%
    • Real estate: 19%

Regional Banking

  • 66% of business owners bank with a regional bank, but 28% of them are considering a switch.
  • Real estate business owners were most likely to use a regional bank (75%) followed by technology business owners (73%).
  • Percentage of business owners who bank with a regional bank, by industry:
    • Real estate: 75%
    • Technology: 73%
    • Health care: 67%
    • Hospitality: 64%
    • Retail: 64%
    • Education 62%
Business Owners Banking Confidence

Key Takeaways

  • 61% of American business owners are somewhat confident in the U.S. banking system, while just 29% are very confident and 10% aren’t at all.
  • One-third of business owners believe bank customers’ deposits should be fully insured with no limits.
  • When choosing a bank, business owners’ top 3 recommendations are:
    • To look for a bank with a strong reputation and track record (73%)
    • To consider the fees and charges (67%)
    • To consider the level of service and support (52%)

Preparedness and Backup Plans

  • 56% of business owners said they feel prepared to face another financial emergency, while 44% do not.
    • Percentage who do not feel prepared, by industry:
      • Hospitality: 61%
      • Retail: 50%
      • Education: 40%
      • Health care: 36%
      • Technology: 34%
      • Real estate: 22%
  • 63% of business owners have a financial backup plan in place in case of emergencies, but 37% do not.
    • Percentage who do not have a backup plan, by industry:
      • Hospitality: 42%
      • Retail: 41%
      • Health care: 39%
      • Technology: 28%
      • Education: 26%
      • Real estate: 16%
    • Of business owners who have a financial backup plan, their main reasons are:
      • Protecting against unexpected expenses (68%)
      • Preparing for a financial crisis (57%)
      • Weathering seasonal fluctuations in revenue (32%)
      • Maintaining business continuity during economic downturns (31%)
      • Seizing investment opportunities (21%)
      • Funding future growth initiatives (20%)
      • Paying for equipment or infrastructure (13%)
    • These backup plans include the following:
      • Emergency savings account (77%)
      • Personal savings account (51%)
      • Selling assets or investments (45%)
      • Investment portfolio (37%)
      • Line of credit (35%)
      • Insurance policies (23%)
      • Crowdfunding or seeking investor funding (6%)


B2B Reviews surveyed 725 business owners about the recent bank collapses. By industry, 23% were in retail, 19% were in technology, 6% were in education, 5% were in hospitality, 5% were in health care, 5% were in real estate, and the rest were in a different industry. As for business size, 65% were micro-business owners (less than 10 employees), 13% were small-business owners, 10% were mid-sized business owners, and the remaining 12% owned large businesses.

About B2B Reviews

At B2B Reviews, we pride ourselves on being a trusted resource for businesses seeking valuable insights on various industries, providing expert analysis, and empowering decision-making through comprehensive evaluations that cover a wide range of topics, including business loans and beyond.

Fair Use Statement

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