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Small businesses would move for superior mobile banking

Two thirds say they’d switch banks if mobile offering was tailored to them

Small businesses would move for superior mobile banking

Based on more than 800 in-person branch visits by prospective Small Business Owners (SBOs) at banks across the United States, the ath Power Small Business Banking Study revealed what small business clients expect from their banking relationship, gaps in the service experience and how banks measured up in this all-important market segment.

A significant finding from this year’s study was the impact of a bank’s mobile banking offering. Sixty-six percent of SBOs said they would be likely to switch banks for one with a superior mobile offering. Conversely, despite its growing prevalence and importance to SBOs, 37% of bankers in the study failed to even mention their bank’s mobile offering.

"Mobile represents opportunities and challenges for banks to attract and retain small business clientele" says Frank Aloi, CEO. "Banks with mobile offerings tailored specifically for small business will achieve success by delivering differentiated features and functionality not available in standard mobile banking services."

Results also revealed that bankers from the highest rated banks were significantly better at determining needs and building rapport with prospective customers. Of those SBOs who reported that the banker built a rapport with them, 91% said they would become a customer compared to 28% of those who did not.

"Personal connections remain critical for banks seeking to acquire new small business customers," Aloi says. "The most successful institutions are training bankers on how to build rapport and then using applicable research and coaching to continuously improve."

The study further uncovered missed opportunities for sales, as only about half (52%) of the SBOs were actually asked to open an account during their visit to the bank.

John Ginovsky

John Ginovsky is a contributing editor of ABA Banking Journal and editor of the publication’s TechTopics e-newsletter. For more than two decades he’s written about the commercial banking industry, specializing in its technological side and how it relates to the actual business of banking. In addition to his weekly blogs—"Making Sense of It All"—he contributes fresh, original stories to each TechTopics issue based on personal interviews or exclusive contributed pieces. He previously was senior editor for Community Banker magazine (which merged into ABA Banking Journal) and was managing editor and staff reporter for ABA’s Bankers News. Email him at jginovsky@sbpub.com.

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