Small Business Mobile Banking: Key Customer Viewpoints 2013

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Presentation to American Banker Small Business Banking Conference, 2013. Based on 2013 study of US small business mobile banking customer conducted during Q1. Includes slides on revenue opportunity, likelihood to switch banks, overall usage of small business mobile banking and what is missing from current offerings.

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Small Business Mobile Banking: Key Customer Viewpoints 2013

  1. 1. The Higher Bar Small Business Mobile Users will Pay and are More Likely to Switch Banks for Better Mobile Offerings Michael J. McEvoy Managing Director, ath Power Consulting mmcevoy@athpower.com +1.617.243.9500
  2. 2. Background: The ath Power Mobile Banking Study™ • The 2013 ath Power Mobile Banking Study™ • Nationwide study published in Q3 • 380+ banks and credit unions included in study • See www.athpower.com for more details Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited.
  3. 3. The Small Business Mobile Banking Customer… …is Largely Neglected • Small business customer has largely been neglected, with most banks focusing near exclusively on retail segment • Even larger banks are still in early stages of mobile banking rollouts for retail customer base • Are bankers investing too little in ‘small business mobile’? Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited.
  4. 4. Small Business Mobile Banking Customers Use Mobile Services More Often than Retail Customers KEY INSIGHT #1 How often do you use mobile banking? 32% 2-3 Times Per Week 30% 21% Daily 14% 10% Multiple Times Per Day 4% Source: The 2013 ath Power Mobile Banking Study™ Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited. SBO Consumer
  5. 5. Current Services Offered to Small Business Customers are Well Utilized, But Customers Are Ready for More Types of Mobile Banking Transactions Conducted Recently by Small Businesses (percent of small business mobile customers) Check Balances 75% Pay Bills 71% View Recent Transactions 67% Receive Account Alerts 62% Transfer Funds Between Own Accounts 62% View Cleared Checks 55% ATM/Branch Locator 50% Check Credit Available 44% Remote Deposit Capture 36% Transfer Funds to Outside Bank Accounts 36% Wire Transfers 28% Payroll 27% Source: The 2013 ath Power Mobile Banking Study™ Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited.
  6. 6. Sizeable Gap Between Services Provided by Banks and What Business Customers Actually Want 65% Credit Card Acceptance Credit Checking of Customers 43% 52% 26% 50% Wire Transfers 42% 42% 38% Stop Payments Tax Payments Payroll Source: The 2013 ath Power Mobile Banking Study™ Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited. 41% 29% 38% 32% Desired Available
  7. 7. Majority of SBs Are Willing to Pay for Mobile Banking What is the most you would be willing to pay per month for the convenience of business mobile banking capabilities? 37% 17% 11% 9% 11% 9% 6% $1-2 $3-5 $6-8 Source: The 2013 ath Power Mobile Banking Study™ Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited. $9-11 $12-15 $15+ Not Willing to Pay
  8. 8. SB Customers are Almost Twice as Likely as Retail Customers to Accept Fees for Mobile KEY INSIGHT #2 Percent Willing to Pay Monthly Fee 68% Retail Customer SBO 52% 37% 19% 11% $1-2 Source: The 2013 ath Power Mobile Banking Study™ Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited. 13% $3+ Not Willing to Pay
  9. 9. 2 Out of 3 SB Mobile Customers Would Consider Leaving Their Bank Over Quality of Mobile Banking How likely would you be to switch banks if you found another bank with a superior business mobile banking offering? Likely Unlikely 31% 10% 35% 24% Very Source: The 2013 ath Power Mobile Banking Study™ Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited. Somewhat
  10. 10. Small Business Customers Are Much More Likely to Consider Switching Banks Over Mobile Banking KEY INSIGHT #3 How likely would you be to switch banks if you found another bank with a superior mobile banking offering? 31% Very Likely 9% SBO Consumer 35% Somewhat Likely 35% Source: The 2013 ath Power Mobile Banking Study™ Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited.
  11. 11. TAKEAWAYS Compared to retail customers, the Small Business mobile banking customer… • uses mobile banking more frequently • is considerably more willing to pay for it • but, has higher expectations and is more willing to switch banks over it Conclusion: Banks must make small business mobile more of a priority or risk losing market share Copyright © ath Power Consulting. All rights reserved. Unauthorized reproduction of this content is strictly prohibited.
  12. 12. The Higher Bar Small Business Mobile Users will Pay and are More Likely to Switch Banks for Better Mobile Offerings Michael J. McEvoy Managing Director, ath Power Consulting mmcevoy@athpower.com +1.617.243.9500

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