Has your business jumped on the mobile banking bandwagon yet? If not, you’re in the minority.
New research reveals that two-thirds of small businesses now use mobile banking. One-third do so at least weekly. Only 18 percent of business owners see no need for mobile banking.
RateWatch uncovered the data in an effort to help banks figure out how to make more money from small business mobile banking. With consulting firm Simon-Kucher & Partners, RateWatch surveyed 147 businesses with under $5 million in revenue (in industries including retail, construction, finance, insurance, professional, scientific, and technical services) about their banking habits and needs, and about services they would pay for. Most survey respondents manage the day-to-day banking at their businesses.
Results of the survey, summarized in the report Monetizing Mobile Banking for Small Business Customers, indicate that “a wide range of small businesses are willing to pay for more advanced mobile banking features," according to RateWatch business development associate Jamie Zussman. The survey also identified a “need in the marketplace for mobile banking solutions that create value for small businesses and consequently, could generate revenue for banks," added Jens Baumgarten of Simon-Kucher & Partners.
The report authors admonished banks to stop giving away mobile banking services for free. “Mobile banking offers huge potential to improve interaction with small businesses … Unlike consumers, a wide range of small businesses is readily willing to pay for mobile banking services.”
Indeed, most survey respondents said they would pay monthly fees of between $1 and $10 for unlimited transactions for “informational services, transactional services, and advanced interactive services.”
Among the mobile banking services small businesses value most are accessing account information, depositing checks, and monitoring fraudulent activities. And the “advanced interactive" mobile banking services that small businesses claimed are most important are: receiving transaction verification and advanced warning; capturing and storing receipts; and requesting payment flexibility for loans, mortgages, or credit cards.
If you're not leveraging mobile banking in your business yet, don’t feel like a Luddite. At least you’re not among the 4 percent who have never even banked online. Are you?