As a small to medium-sized business owner in Nigeria, navigating the complex banking landscape can be daunting. With numerous options available, it’s essential to choose a banking partner that understands your unique needs and provides tailored support.

In this article, we’ll explore why Fintechs with POS services and Tier-3 to Tier-2 banks are better suited for small to medium-sized businesses, and why Tier-1 banks may not be the best fit.

For micro to small businesses with revenues between N50m to N100m yearly, Fintechs with POS services are an attractive option. These Fintechs offer a range of services that cater specifically to the needs of small businesses, including quick credit lines to support cash flows.

Unlike Tier-1 banks, Fintechs are more agile and can provide faster, more flexible solutions that meet the unique demands of small businesses. Tier-1 banks, on the other hand, are often too bureaucratic and slow to respond to the needs of small businesses. Their processes are geared towards larger corporations, leaving small businesses to navigate a complex, often frustrating system.

Furthermore, Tier-1 banks tend to view small businesses as mere revenue streams, rather than valued partners. For small-sized businesses with hundreds of millions in yearly revenue and consistent monthly cashflows, Tier-3 to Tier-2 banks are a better fit. These banks have fewer bureaucratic hurdles, allowing for faster approvals and more personalized service. Unlike Tier-1 banks, where small businesses can get lost in the crowd, Tier-3 to Tier-2 banks offer a more intimate, supportive environment.

When choosing a bank, it’s essential to profile your would-be account officer and branch manager. Ensure they are proactive, knowledgeable, and experienced in addressing the banking needs of businesses your size.

Tier-3 to Tier-2 banks are often hungrier for growth and more willing to prove themselves, making them more responsive to the needs of small businesses. For new money and medium-sized businesses with billions in yearly revenue and solid monthly cashflows, it’s best to stick with Tier-3 and Tier-2 banks, unless your banking needs are specialized or require international transactions. These banks offer a more personalized, supportive environment that can help drive business growth.

In conclusion, small to medium-sised businesses in Nigeria should rethink their banking options. Fintechs with POS services and Tier-3 to Tier-2 banks offer more tailored, responsive solutions that meet the unique needs of small businesses. By choosing the right banking partner, small businesses can access the support they need to thrive and grow in Nigeria’s competitive market.
⁠Mr Abiola is an entrepreneur based in Abuja.