Boston, MA, June 11, 2008 – A new report from Aite Group, LLC profiles the characteristics of small businesses most likely to bank with community banks. The report also compares the success rates of community banks against other bank segments when serving small businesses, and recommends areas for future improvement.
The report, based primarily on the results of a November 2007 Aite Group survey of 303 small businesses generating less than US$10 million in annual revenues, reveals that 30% of those surveyed consider a community bank their primary institution. Community banks are currently focusing greater attention on the small-business customer segment than ever before. This increased attention is beginning to pay off: Community banks have increased their market share in this space over the last couple of years, and have achieved higher customer satisfaction rates for service than many of their larger bank counterparts. Despite community bank progress, more can be done - particularly with regard to the technology offered and through online banking capabilities.
"While financial institutions of all sizes have focused greater attention on winning small-business customers, community banks run the risk of losing their current advantage in this area," says Christine Barry, research director with Aite Group and co-author of this report. "Community banks must leverage technology, not only to maintain their high levels of service, but also to expand their reach, level the playing field against larger institutions and prepare themselves for the continuously evolving marketplace."
This 23-page Impact Note contains 24 figures. Clients of Aite Group's Wholesale Banking service can download the report.
