One of the largest U.S. banks is expanding the digital tools it offers small businesses, a customer category whose needs are attracting the attention of a flurry of software developers. PNC Bank, the sixth-largest bank by assets, announced Monday a partnership with Bill.com. The relationship has allowed the Pittsburgh bank to expand its tech offerings for small businesses to help them manage their cash flow management, in the hopes of deepening customer relationships and gaining fee income.
The announcement comes at a time when many banks are rethinking the way they serve small business clients. Industry analysts have identified the small business category as ripe for innovation, and suggest banks that create customized digital tools such as cash flow forecasting can better serve customers and decrease the risk of disintermediation from startups like Square and InDinero.