I do wonder if the problem lies with the banks or with the amount of federal regulation that makes certain customers unattractive.
I had a small business bank account, and one day I got a call from the bank asking to go through my transaction list and provide explanations for all the transactions. Fortunately they didn't close the account, but given the fact that it was costing them to investigate my account, it did make me wonder if they would have closed it if it wasn't profitable enough.
It is combination of both factors, along with others. (a) big banks (b) BSA compliance manuals (AML, KYC) (c) regulators slapping huge fines against big banks for "weak controls" (d) an algorithmic solution to show that banks have "strong controls"
(b), (c), (d) force banks to wage war against cash. So, if you have a small business that accepts cash, your bank doesn't want your business as a customer, as they don't want to accept cash deposits, nor do they want customers who withdraw cash regularly. That's why large retailers have their own shadow banks to get around the push towards anti-cash.
I had a small business bank account, and one day I got a call from the bank asking to go through my transaction list and provide explanations for all the transactions. Fortunately they didn't close the account, but given the fact that it was costing them to investigate my account, it did make me wonder if they would have closed it if it wasn't profitable enough.