Small Business and Mobile Banking: A Growing Imperative?
Aite Group said its research finds that increasing their business with small businesses is critical to their overall success, in the opinion of 80% of American banks.
Reaching a lot of them also will require including mobile banking as offerings to small and medium enterprises, the Boston-based think firm said in a new report.
While not yet the preferred banking channel, Aite Group said, its research shows that currently 33% of small businesses currently bank with a mobile device. Another 31% express an interest in doing so, the research and advisory firm said, and 54% will by 2015.
“As mobile technologies become an integral part of their customers’ lives, financial institutions must be ready and able to offer the mobile channel as yet another channel through which to interact with their customers,” concludes the report titled “Small Business Mobile Banking: A Promising Opportunity.”
Half of the responding banking execs said they think offering mobile banking will be critical to serving small and medium-sized businesses over the next three years, while 41% said it will play a role but not as important as other channels.
However, there’s pricing resistance, the think firm found. More than half of those interviewed said they would not be willing to pay extra at all for mobile banking for their companies, while another 18% said they’d be willing to pay $5 to $10 a month for the service.
Aite Group based its conclusions on a survey earlier this year of 17 large U.S. banks, a November 2011 survey of 24 risk executives at American banks and survey last August of 291 businesses in the U.S. with less than $10 million in annual revenue.