Businesses Value Mobile Banking: Study
Many small businesses would prefer to pay a monthly fee for unlimited transactions for informational services, transactional services and advanced interactive services, according to a new study.
The 2014 Monetizing Mobile Banking for Small Business Customers Study was based ona total of147 survey responses completed by U.S.-based small businesses with up to $4.99 million in annual revenue.
The median amount that companies were willing to pay as a monthly fee for certain unlimited transactions ranged from $1 to $10, the data showed.
Depositing a check, reporting/blocking lost/stolen cards and transferring money between accounts to optimize savings portfolio or to pay off a loan were the most important transactional mobile banking services, the small businesses said.
The three most important informational mobile banking services were accessing account information, receiving alerts and service guarantees, and knowing how they are protected, according to the study.
Monitoring fraudulent activities, scheduling appointments at a bank location and reaching an institution when needed, such as calling customer service or placing an inquiry, were the three most important basic interactive mobile banking services.
“A wide range of small businesses are willing to pay for more advanced mobile banking features, but most financial institutions are only offering free basic services,” said Jamie Zussman, business development associate for RateWatch, a banking data and analytics service, and one of the sponsors of the small business mobile banking study.
When it came to the most advanced interactive mobile banking services,small business ownerssaid receiving transaction verification and advanced warning, capturing and storing receipts and requesting for payment flexibility for loans, mortgages, or credit cards were their top choices.
Thirty-four percent of the study’s respondents said they use mobile banking on a weekly basis, while 33% use it less frequently and 33% have never used it at all. Eighteen percent said they didn’t see a need for mobile banking.
Comparatively, 75% said they use online banking on a weekly basis, 21% use it less frequently and 4% have never used it at all, according to the study.
In addition to RateWatch, the study was sponsored by Simon-Kucher & Partners, a strategy and marketing consulting firm.