First Internet Bank Report Finds Small Businesses Maintaining Stability by Managing Costs as Consumers Grow More Selective

FISHERS, Ind.--(BUSINESS WIRE)--First Internet Bank today released its Do More Business™ Report, a research study designed to better understand the economic outlook of small businesses and the consumers who support them. The report is based on insights from a survey of 200 small business owners and a nationally representative survey of 1,000 U.S. consumers.

Small businesses maintain stability in a constrained economic environment by actively managing rising costs through pricing adjustments and margin trade-offs. Consumers remain supportive but increasingly selective in their spending.

Small Businesses Show Resilience

Over three-quarters (76%) of small business owners report being well-positioned to absorb financial shocks such as rising costs, slower demand or delayed payments over the next 12 months. Cost pressures, however, remain the defining challenge. Forty-six percent of small business owners cite inflation and rising expenses as their top concern, outpacing worries about customer demand, cash flow volatility and regulatory change.

In response, businesses are actively managing those pressures. Approximately half have raised prices, while nearly a quarter (23%) absorb higher costs to maintain customer relationships and competitiveness.

This approach reflects measured confidence. Most businesses plan steady or moderate growth rather than aggressive expansion as they balance opportunity with ongoing economic uncertainty.

Opportunity to Deepen Banking Partnerships

Most small business owners (76%) report satisfaction with their bank’s digital experience. Core capabilities such as mobile banking, real-time payments and fraud monitoring broadly meet expectations, indicating that foundational digital tools are largely in place for many businesses.

The greater opportunity lies in strategic guidance and financial education. As businesses navigate cost pressures and evolving demand, they make increasingly disciplined financial decisions and look for support beyond transactional banking. Greater clarity around available financing options and more proactive guidance can help businesses make more informed decisions and confidently pursue opportunities in a more uncertain environment.

Consumers Remain Supportive, but Selective

Consumer support for small businesses remains strong. Nearly all consumers (96%) say supporting local businesses matters to them personally. Most (83%) have shopped at a small business in the past month, and 37% shop at least weekly, with 68% indicating a willingness to pay a premium to do so.

Even when small businesses raise prices due to factors outside their control, 78% of consumers say they are understanding. But at the same time, nearly one in five consumers report abandoning a purchase when their preferred payment method is not available, underscoring the importance of flexibility and convenience as spending decisions become more deliberate.

“The confidence we’re seeing from small businesses is encouraging, and it reflects real opportunity ahead,” said Nicole Lorch, President and Chief Operating Officer of First Internet Bank. “At the same time, businesses must navigate a more complex environment, forced to balance cost pressures, customer expectations and growth decisions. Owners have told us they want faster access to capital, clearer guidance on financing options and digital tools that reflect how they actually run their businesses. That’s the foundation for the kind of banking partnership that helps businesses succeed in today’s environment.”

The Do More Business™ Report is available in the press & news section at firstib.com.

About First Internet Bank

First Internet Bank opened for business in 1999 as an industry pioneer in the branchless delivery of banking services. With assets of $5.7 billion as of March 31, 2026, the Bank provides consumer and small business deposits, consumer loans and specialty finance services nationally. The Bank also offers commercial real estate loans, commercial and industrial loans, SBA financing and treasury management services. Additional information about the Bank, including its products and services, is available at firstib.com. The Bank is a wholly-owned subsidiary of First Internet Bancorp (Nasdaq: INBK). First Internet Bank is a Member FDIC.

Methodology

First Internet Bank commissioned two independent surveys to better understand how small businesses and consumers are navigating today’s economic environment and what they expect from their banking partners.

The small business survey was conducted by Centiment among 200 U.S. small business owners and entrepreneurs with annual revenue under $5 million. The research explored cash flow confidence, access to capital, familiarity with Small Business Administration (SBA) lending, adoption of digital banking tools, use of artificial intelligence and overall economic outlook. Respondents were sourced from Centiment’s vetted U.S. business panel and pre-qualified to meet firmographic criteria.

The consumer survey was conducted by Dynata among a nationally representative sample of 1,000 U.S. adults. The survey examined attitudes toward supporting small businesses, shopping and payment preferences, expectations related to artificial intelligence and confidence in the U.S. economy. Participants were drawn from Dynata’s proprietary, first-party panel of verified, opt-in respondents.

Both surveys were fielded in March 2026.