While Most Business Owners Prefer In-Person Banking, Gen Z and Millennials are Driving a Shift Toward Digital-First Service

Academy Bank serves business owners according to their preferences – with tailored lending options and automated underwriting for loans under $50K approved in as little as one business day

KANSAS CITY, Mo., Aug. 25, 2025 /PRNewswire/ -- Small business owners most value ease, speed and human support when it comes to securing a business loan, according to new research from Academy Bank. The national survey of more than 220 entrepreneurs – spanning industries, revenue levels and generations – reveals that banks offering simplified lending and expert guidance are most likely to win and retain business clients.

From hiring new staff and purchasing inventory to expanding into new markets, business loans are critical tools for small business growth. Academy Bank's new report, "Business Loans and Banking Relationships: What Matters Most to Small Business Owners," explores how entrepreneurs approach loans, the challenges they face, and what they value most when choosing a banking partner.

The research reveals a clear hierarchy of business banking priorities. When selecting a bank, the top three factors cited by small business owners as most important were:

• Ease of the loan application process (56.9%)
• Competitive interest rates (54.1%)
• Personalized service and financial guidance (52.7%)

These insights reveal a key takeaway: Entrepreneurs want fast, simple financing – paired with knowledgeable, human support. Banks that combine both are best positioned to meet small business needs across markets.

"This research confirms what we hear from clients every day," said Chuck Frederick, chief retail officer at Academy Bank. "Small business owners aren't just looking for a lender – they're looking for a partner who understands their business and makes financing as easy and accessible as possible."

Personal Relationships Still Matter – But Generational Change Is Coming
Despite the widespread adoption of digital tools, nearly 75% of small business owners surveyed still prefer some level of in-person service – with 60.3% choosing to work directly with a dedicated banker. But that preference varies sharply by generation:

• 56% of Gen Z (ages 18-29) business owners favor fully digital or hybrid banking
• Compared to just 17.7% of Baby Boomers (age 61+)
• Millennials (ages 30-44) and Gen X (ages 45-60) fall in the middle at 43.3% and 28.6% respectively

"The generational shift in business banking preferences is more than a trend – it's a signal," said Jodi Vickery, chief digital officer at Academy Bank. "As younger entrepreneurs take the lead, they'll expect both digital access and high-quality support. Banks that can deliver both will lead the next era of small business banking."

Small Businesses Borrow to Grow
Academy Bank's research found that a majority of small business owners – nearly two-thirds of respondents (65.8%) – have taken out a loan for their business.  This finding reinforces the idea that loan capital plays a critical role in helping business owners launch, maintain or grow their operations. Nearly 70% of respondents borrowed $100,000 or less, and the most common reasons were growth-oriented:

• 63% used the money to purchase equipment or inventory
• 53.4% expanded operations (e.g., new locations, more employees)

Many of the entrepreneurs surveyed cited multiple incentives for borrowing money, highlighting the fact that small businesses simultaneously juggle several financial challenges. The other most commonly cited reasons were managing cash flow (43.8%) and marketing/advertising (30.1%).

Academy Bank Aligns Offerings with Small Businesses Preferences
Academy Bank is uniquely positioned to serve varying small business needs. The bank offers:

• A tailored lending application experience – online, in-branch, or with a relationship banker
• Automated underwriting for loans under $50,000, with decisions in as little as one business day
• A full suite of business banking products, including traditional small business loans, lines of credit and SBA loans

"Our lending solutions are designed with business owners in mind," adds Frederick. "Whether you're a startup applying online at midnight or an established business that wants a trusted advisor, we meet you where you are."

Read the full white paper here. For a related article, see "Understanding Small Business Loans: Borrowing Trends & Purposes."

About Academy Bank
Academy Bank is a full-service commercial bank with $2.9 billion in assets and more than 75 banking centers in Arizona, Colorado, Kansas, Arkansas and Missouri. Academy Bank provides a wide range of financial solutions for business and individuals, including commercial and business banking, treasury management and mortgage services. Academy Bank is privately held and family-owned by Dickinson Financial Corporation, a $4.4 billion holding company headquartered in downtown Kansas City, Missouri. Academy Bank's sister bank, Armed Forces Bank, headquartered in Leavenworth, Kansas, proudly serves active and retired military and civilian clients around the world with more on-base locations than any military bank in the country. For more information, visit www.academybank.com.

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SOURCE Academy Bank