This individual Report Small Business Banking Changing Landscape is available for purchase. This Report is available to members of Mercator Advisory Group’s Customer Interaction Advisory Service. Please be advised that this Report is normally part of a research and advisory service that provides ongoing support throughout the year. As such, this Report contains significant depth of content that is selected for its strategic importance to our members. (For a description of these services, see our Advisory Services section).
While the Report represents significant analyst time invested, there is no means of our ascertaining if it will fully meet your specific intended purposes. Typically, these Reports form the basis for future discussions with our clients where we are able to fine-tune additional information that we have gathered in the construction of the series of Reports (or locate new information rapidly due to our exclusive focus on gathering information in the payments industry) for specific member needs.
Unfortunately, in fairness to our paying members, we are not able to offer this level of support for a single Report purchase. We will, however, credit any Research Document purchase against the future purchase price of the service should you become a member within 30 days of purchasing the document.
The price for individual Report purchases is $2950 per document.
Use the form below to request this individual Report purchase orClick here for a fax-back order form
Small Business Banking Changing Landscape
NEW RESEARCH REPORT BY MERCATOR ADVISORY GROUP
Banks are realizing small businesses are a rich source of deposits and profits for banks. They represent the largest business segment with 27 million businesses. This report explores ways for banks to attract and protect their small business customers from aggressive banks and nonbank predators?
Small business market as defined by the SBA is businesses with less than 500 employees. However, a company with 5 employees looks and acts completely differently than a 400 employee company. To be successful in this space banks need to look closer. For example, Small Office and Home Office (SOHO) sometimes fall under the bank's radar lost in retail banking. SOHO make up the vast majority of small business total, 19 million SOHO compared to 8 million small businesses.
SOHO businesses can be small doctor or dentist offices, an independent CPA, consultants, architects, or start-up companies just getting going. These businesses are very important to banks because their banking relationships haven't matured. Identifying SOHO businesses is a key challenge since most operate with regular checking accounts. SOHO's can easily be serviced at local bank branches. Banks should have the advantage in capturing the rest of their relationship. But like traditional small businesses SOHO's are interested in reliable services that save time and money. As a small business matures they require more financial services making it difficult for them to leave the bank.
One of the 16 Exhibits included in this report:
Industry segmentation enables banks to identify and concentrate on small business niche markets that provide the greatest paycheck. Some banks are customizing banking solutions for specific small business niche market segments. For example elective surgery can be very expensive. One way banks can help is by offering doctors a patient financing solution guaranteeing their payment and allows the patient a choice of payment plans, spreading payments over a period of time, 12 to 24 months. This makes the procedure affordable and doctors do not have to finance their patients.
The small business community is worried that the mortgage crisis will spill over to small business financing making it harder for their local banks to offer credit lines. For growing small businesses this means looking at alternative financing. Small business will be attracted to banking services like payroll help small business reduce operation costs by freeing up resources. Insurance products and affordable health benefits for employees help businesses during tight credit times.
Sarsha Adrian, Senior Research Analyst, in Mercator Advisory Group's Corporate Banking practice and author of this report, comments; "the small business market is very diverse, to help understand small business this report breaks down the small business market by SOHO and businesses over 5 employees. Retiring baby boomers starting their second careers look to their banks for advice and services. Small medical or dental practices are another example of SOHO businesses that can develop into deposit relationships."
Members of Mercator Advisory Group have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits. Please visit us online at http://www.mercatoradvisorygroup.com/.
For more information call Mercator Advisory Group's main line: 781-419-1700 or send email to firstname.lastname@example.org.