Mercator Advisory Group’s latest report, Business
Banking Services: Expanding Online and Mobile,is the third of three Insight
Summary Reports summarizing the results of the 2016 Small Business Payments and Banking Survey, a web-based survey
of 1,607 U.S. small businesses (between $500,000 and $5 million annual sales)
that accept payment cards, which was fielded in March 2016. The previous two
reports presented the survey’s findings on payment acceptance and business-to-business
payments. The new report analyzes small businesses’ use of banking services and
The survey finds that 84% of small businesses most
commonly visit branches to make teller deposits and 47% make deposits at ATMs.
Nearly all small businesses surveyed regularly visit the branch of their
business bank or credit union, but far fewer, 1 in 5, go to the branch to meet
with a relationship manager.
Branches are still a key channel used by small
businesses and present an opportunity for financial institutions to cross-sell
their business services. Yet, these branch visits are primarily transactional.
More often than not, small business owners stop by their branch just to make simple
transactions rather than to seek financial advice or support services, so their
visits are a missed opportunity for the financial institutions. Nearly all
small businesses have business relationships with a primary financial
institution for deposit accounts and use the institution’s online banking
services; 3 in 4 use mobile banking services. More robust online and mobile
banking features provide the convenience this segment needs.
“While small businesses visit the branches
primarily for quick and simple transactions, they would like to see
improvements in online and mobile banking geared to help their businesses
transact more easily and provide more services they need to manage and grow
their business,” notes Karen Augustine, Mercator Advisory Group’s Senior
Manager of Primary Data Services, the author of this report.
This report contains 40 pages
and 24 exhibits.