Online Small-Business Banking Strategies of Large U.S. Banks

Report Summary

Online Small-Business Banking Strategies of Large U.S. Banks

Of large U.S. banks, only 6% have achieved a small-business online banking adoption rate greater than 40%. With the help of aggressive technology deployment plans, and a better understanding of customer needs, 44% of these banks hope to achieve that goal

Christine Barry
Research Director

Boston, MA, August 15, 2007 – A new report from Aite Group, LLC explores the key small-business online banking strategies of large U.S. banks. While these banks often utilize a three-pronged strategy - Internet, branch and call center - for reaching customers, the Internet channel has become increasingly important, and is now the preferred channel of small businesses for interacting with their banks. For these banks, offering the most advanced online capabilities is therefore essential to succeeding in this space. The report findings are based on Aite Group's June-July 2007 survey of 16 of the 30 largest U.S. banks.

The report, Online Small-Business Banking Strategies of Large U.S. Banks, analyzes the specific enhancements banks will be making to their online small-business banking offerings over the next 24 months. Enhancements are broken down into four major categories: cash management, security, online account opening, and online personal financial management and tools.

"Large U.S. banks have made a tremendous effort over the last year to better understand the needs of small-business customers, and are leveraging their new-found knowledge to significantly enhance their online banking strategies and offerings," says Christine Barry, research director at Aite Group and author of this report. "Perhaps the most obvious change is the addition of Quicken-like capabilities - such as spending categories, cash flow forecasting, and graphical capabilities - to online banking sites. In addition, several of the largest banks also have plans in place to offer Electronic Invoice Presentment and Payment, online account opening, and tighter security at the transaction level."

This 21-page Impact Note contains 21 figures and one table. Clients of Aite Group's Wholesale Banking services can download the report.

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