Across Minnesota and the rest of the country, small business owners are rethinking where they bank. For years, the largest financial institutions promised convenience, scale, and sophistication. But increasingly, entrepreneurs are discovering that those promises come with strings attached: long wait times, rigid processes, rising fees, and a sense that their business is just another number in a massive system.
It’s no wonder many small businesses are leaving big banks and exploring better options.
This post is for business owners who:
Feel frustrated with their current bank.
Wonder what other options exist beyond the big names.
Want a clear guide to choosing the right banking partner.
We’ll cover:
The most common frustrations with large banks.
What small businesses should really look for in a bank.
Why local and regional banks are often the best alternative.
Practical steps to switch banks without disrupting your business.
If you run a small business, you’ve likely experienced one (or more) of these pain points with a large bank:
Loan decisions often take weeks, sometimes months, at national institutions. Meanwhile, opportunities don’t wait; whether that’s taking on a new contract, purchasing equipment, or covering payroll during a tight cash cycle.
Big banks rely on scale. That means rigid underwriting, one-size-fits-all products, and little flexibility for businesses that fall outside the mold. A family-owned manufacturer in Ramsey or a growing service business in Eden Prairie needs flexibility and the reliability their partner is there when they need it...not a cookie-cutter product.
The fees keep increasing, but the service isn’t getting better. Many small businesses end up navigating automated phone trees, wait lines in the branch, or impersonal call centers instead of getting the real guidance they need.
Decisions are often made hundreds of miles away. That disconnect leads to missed opportunities because someone in another state doesn’t understand the nuances of your business or your local market.
When we talk to Minnesota entrepreneurs, five themes come up again and again.
1. Relationship banking. You want someone who knows your name and your story, and not just your account number. Providing guidance on what is the best financing option for your business and its business cycle, and not just what is the fastest but maybe not the most prudent option.
2. Access to decision-makers. The best banks empower local lenders to say yes quickly, not wait for a committee in another state.
3. Flexibility. Every business is unique. A good banker tailors solutions to fit your needs. We've built our business on being reliable, flexible, and creative to allow the flexibility and support our clients need to achieve their strategies.
4. Guidance beyond transactions. Advice on cash flow, introductions to other business owners, and treasury tools that make daily operations easier.
5. Community impact. When your deposits fund local businesses, schools, and municipalities, you’re not just banking, you’re building.
Small to medium sized businesses, and particularly those that are owner-operated, drive the Minnesota economy. The financing that support these growing businesses are usually found with your local bank. According to the ICBA, community banks make roughly 60% of U.S. small-business loans under $1 million and 80% of banking industry agriculture loans. The focus on small business lending isn’t an accident.
Community banks win because they:
Decide locally. Lending decisions are made by people who know your market.
Move faster. Without layers of bureaucracy, approvals happen in days, not months.
Offer real relationships. You get a banker who’s invested in your success.
Reinvest locally. Your deposits fuel local businesses and municipalities, not global speculation.
Here in Minnesota, this isn’t theory, it’s our reality. Businesses across our locations from Glencoe to Waconia to Eden Prairie, Ramsey, and Cambridge are moving away from the big banks and toward partners that actually sit across the table from them.
Switching banks feels intimidating, but it doesn’t have to be. Here’s a practical roadmap:
Do you need faster credit decisions? Lower fees? Better technology? Write down the 2–3 most important things.
Schedule a conversation. Do they ask about your business model and long-term goals, or just try to sell a product? That tells you a lot.
Who makes lending decisions here?
How long does it usually take to approve a loan?
Can you share examples of businesses like mine you’ve helped?
A lower rate doesn’t matter if the service is poor or the loan never gets approved. Look at responsiveness, expertise, and trustworthiness.
Open your new account.
Redirect payroll and vendor payments.
Update recurring billing.
Close the old account once everything clears.
The right bank will walk you through each step to minimize disruption. Banks have treasury management and personal banking teams to help support the transition.
Are community banks safe?
Yes. Community banks are FDIC insured, just like national banks. Security Bank & Trust Company for example works with firms like InterFi and R&T to provide excess FDIC insurance coverage up to $60 million per tax identification number.
Do community banks have the same technology as large banks?
Yes. Mobile deposit, online bill pay, and treasury management tools are widely available. The difference isn’t technology, it’s service.
How long does it take to switch business banks?
With the right guidance, the process usually takes a few weeks to get the ACHs switched and the payroll configured. Many community banks offer dedicated staff to ensure a smooth transition.
The choice between a big bank and a community partner isn’t just about products—it’s about whether your banker knows the realities of doing business here in Minnesota.
Take Jalissa Kruckman and Taylor Sawyer, co-owners of Kruckman Dental and K & S MedSpa. Jalissa first came to Security Bank & Trust Co. as a teenager opening her first checking account. Years later, as she and Taylor launched new ventures, they relied on us for the financing and guidance to acquire equipment, expand services, and keep growing. As Jalissa puts it, “They truly want to help make every loan an easy process. If I ever have questions, they are always willing to help in a very timely fashion.” That kind of relationship—built over decades—is something no national bank can replicate.
And then there’s RAM Buildings, Inc., a leader in wood and steel frame construction. Founders Rollie Radtke and Gregg Machemehl chose SBTC because they wanted a partner who understood both their industry and their growth ambitions. From managing lines of credit to streamlining cash management with ACH and remote deposit, RAM has found not just financial services, but a team they can call on anytime. As their team put it, “The staff does a great job—they’re always ready to help.”
That’s the Minnesota difference.
If you’re a small business owner who feels stuck with a big bank, you’re not alone. The frustrations are real, but so are the alternatives.
You don’t have to settle for being a number. You deserve a banker who knows your name, understands your business, and is invested in your success.
At Security Bank & Trust Co., we’ve been fueling Minnesotans’ ambitions since 1935. Deposits don’t just sit on our balance sheet; they become loans that build businesses, towns, and futures. This is why we are grateful to have been selected as one of the Best Banks in Minnesota over the past few years.
If you’re ready to bank where your money builds more than interest, let’s talk.