small business mobile banking: key customer viewpoints 2013

The Higher Bar

Small Business Mobile Users will Pay and are More Likely to Switch Banks for Better Mobile Offerings

+1.617.243.9500

[email protected]

Michael J. McEvoyManaging Director,

ath Power Consulting

mailto:[email protected]

Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited.

Background: The ath Power Mobile Banking Study™

• The 2013 ath Power Mobile Banking Study™

• Nationwide study published in Q3

• 380+ banks and credit unions included in study

• See www.athpower.com for more details

http://www.athpower.com/


The Small Business Mobile Banking Customer…

• Small business customer has largely been neglected, with most banks focusing near exclusively on retail segment

• Even larger banks are still in early stages of mobile banking rollouts for retail customer base

• Are bankers investing too little in ‘small business mobile’?

…is Largely Neglected


Small Business Mobile Banking Customers Use Mobile Services More Often than Retail Customers

Multiple Times Per Day

Daily

2-3 Times Per Week

SBO

Consumer

How often do you use mobile banking?

10%

32%

30%

21%

14%

4%

KEY INSIGHT #1

Source: The 2013 ath Power Mobile Banking Study™


Current Services Offered to Small Business Customers are Well Utilized, But Customers Are Ready for More

27%

28%

36%

36%

44%

50%

55%

62%

62%

67%

71%

75%

Payroll

Wire Transfers

Transfer Funds to Outside Bank Accounts

Remote Deposit Capture

Check Credit Available

ATM/Branch Locator

View Cleared Checks

Transfer Funds Between Own Accounts

Receive Account Alerts

View Recent Transactions

Pay Bills

Check Balances

Types of Mobile Banking Transactions Conducted Recently by Small Businesses(percent of small business mobile customers)



Sizeable Gap Between Services Provided by Banks and What Business Customers Actually Want

32%

29%

38%

42%

26%

43%

38%

41%

42%

50%

52%

65%

Payroll

Tax Payments

Stop Payments

Wire Transfers

Credit Checking of Customers

Credit Card Acceptance

Desired

Available



Majority of SBs Are Willing to Pay for Mobile Banking

11%

17%

9%11%

6%9%

37%

$1-2 $3-5 $6-8 $9-11 $12-15 $15+

Not Willing to Pay

What is the most you would be willing to pay per month for the convenience of business mobile banking capabilities?



SB Customers are Almost Twice as Likely as Retail Customers to Accept Fees for Mobile

19%13%

68%

11%

52%

37%

$1-2 $3+ Not Willing to Pay

Retail Customer SBO

KEY INSIGHT #2

Percent Willing to Pay Monthly Fee



How likely would you be to switch banks if you found another bank with a superior business mobile banking offering?

10%

31%

24%

35%

Unlikely

Likely

Very Somewhat

2 Out of 3 SB Mobile Customers Would Consider Leaving Their Bank Over Quality of Mobile Banking



Small Business Customers Are Much More Likely to Consider Switching Banks Over Mobile Banking

35%

9%

35%

31%

Somewhat Likely

Very Likely

SBO

Consumer

How likely would you be to switch banks if you found another bank with a superior mobile banking offering?


KEY INSIGHT #3


TAKEAWAYS

Compared to retail customers, the Small Business mobile banking customer…

• uses mobile banking more frequently

• is considerably more willing to pay for it

• but, has higher expectations and is more willing to switch banks over it

Conclusion: Banks must make small business mobile more of a priority or risk losing market share

The Higher Bar

Small Business Mobile Users will Pay and are More Likely to Switch Banks for Better Mobile Offerings

+1.617.243.9500

[email protected]

Michael J. McEvoyManaging Director,

ath Power Consulting

mailto:[email protected]

small business mobile banking: key customer viewpoints 2013

Economy & Finance