NEW YORK, May 1, 2014 /PRNewswire/ -- Today, RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (TST) and Simon-Kucher & Partners, a strategy and marketing consulting firm, released the results of a study: Monetizing Mobile Banking for Small Business Customers. The data looks at how small businesses currently use mobile banking as well as what features they would benefit from and whether they would be willing to pay for them.
"A wide range of small businesses are willing to pay for more advanced mobile banking features, but most financial institutions are only offering free basic services," said Jamie Zussman, Business Development Associate for RateWatch.
"Our survey identifies this need in the marketplace for mobile banking solutions that create value for small businesses and consequently, could generate revenue for banks," added Jens Baumgarten, Partner, Head of Banking and Financial Services North America for Simon-Kucher & Partners.
Of the small businesses surveyed:
- 34% use mobile banking on a weekly basis, while 33% use mobile banking less frequently. 33% have never used mobile banking at all.
- Comparatively, 75% use online banking on a weekly basis, 21% use online banking less frequently and 4% have never used online banking at all.
- Only 18% see no need for mobile banking.
- Most small businesses would prefer to pay a monthly fee for unlimited transactions for informational services, transactional services, and advanced interactive services.
- The median amount that companies were willing to pay as a monthly for certain unlimited transactions ranged from $1 to $10.
- The three most important informational mobile banking services are: accessing account info, receiving alerts and receiving service guarantees and knowing how they are protected.
- The three most important transactional mobile banking services are: depositing a check, reporting/blocking lost/stolen cards and transferring money between accounts to optimize savings portfolio or to pay off a loan.
- The three most important basic interactive mobile banking services are: monitoring fraudulent activities, reaching your institution when you need to, such as calling customer service or placing an inquiry and scheduling appointments at a bank location.
- The three most important advanced interactive mobile banking services are: receiving transaction verification and advanced warning, capturing and storing receipts and requesting for payment flexibility for loans, mortgages, or credit cards.
An executive summary of the report is available online.
The 2014 Monetizing Mobile Banking for Small Business Customers Study is based on a total of 147 unique survey responses completed by small businesses (of up to $4.99 million in annual revenues) based in the U.S. Over 20 major industries were represented, including retail trade, construction, finance, insurance, professional, scientific, and technical services. Over 75% of respondents are individually responsible for managing all of the day-to-day banking for their business, and therefore are well-placed to respond to questions around small business mobile banking solutions. All survey results were completed in First Quarter 2014. All responses are weighted according to the revenue category in which they fall, using U.S. census data of small businesses as the total population. A range of statistical and analytical methods, including factor analysis, cluster analysis, and TURF analysis, has been used to develop key insights.
For over 20 years, RateWatch has been the premier provider of competitive interest rate and product information to financial institutions across the United States. Consistently providing top quality, highly relevant data RateWatch maintains the largest database in the industry with deposit, loan, and fee information monitoring over 97,000 locations. Rate surveys, product comparisons, financial strength reporting, local/regional/national averages, fee reporting, specialty reports and more are available. To learn more about RateWatch, visit www.rate-watch.com. RateWatch is a division of TheStreet, Inc.
TheStreet, Inc. is the leading independent digital financial media company providing business and financial news, investing ideas and analysis to personal and institutional investors worldwide. The Company's portfolio of business and personal finance brands includes: TheStreet, RealMoney, RealMoney Pro, Stockpickr, Action Alerts PLUS, Options Profits, MainStreet and RateWatch. To learn more, visit www.thestreet.com. The Deal, the Company's institutional business, provides intraday coverage of mergers and acquisitions and all other changes in corporate control. To learn more, visit www.thedeal.com.
About Simon-Kucher & Partners
Simon-Kucher & Partners is a global consulting firm with 700 professionals in 27 offices worldwide focusing on Smart Profit GrowthSM. Founded in 1985, the company has almost 30 years of experience providing strategy and marketing consulting and is regarded as the world's leading pricing advisor.
- mobile banking