Boston, January 23, 2014 – Financial institutions often mistakenly believe that small businesses won't pay for products and services, leading many to all but ignore small-business customers. But small businesses value products that save them time, and the number of non-bank providers targeting small businesses is on the rise, placing financial institutions at greater risk of disintermediation. To retain and win back lost customers, financial institutions must highlight online and mobile capabilities, bundle products, and shift away from giving ill-suited consumer products to small businesses and toward charging for small-business platforms.
Based on a September 2013 online survey of 1,003 U.S.-based businesses generating less than US$20 million in annual revenue, this piece explores the changing profile of the small-business customer segment, helps financial institutions better understand the businesses and products showing the greatest opportunities for revenue generation, and recommends steps for greater success with small businesses.
This 25-page Impact Note contains 18 figures and three tables. Clients of Aite Group's Wholesale Banking service can download this report.