Under-Banked Business Banking Segmentation: Refining Online Banking Strategy to Identify Emerging Small Business Needs

Table of Contents

• Overview
• Primary Questions
• Findings and Analysis
• Methodology
• Defining Under-Banked Business
  • Two in Three Small Businesses Found in the Consumer Platform (Under-Banked Businesses)
  • Earning Consumer Trust
    • Small Business Owners Carry More Balances
    • Small Business Owners Invest More Heavily
    • Small Business Owners Demonstrate a Greater Need for Credit Products
• Small Business Needs = Opportunities for Financial Services
  • Transfers Help Identify Potential Small Business Bankers
  • Revenue From Expedited Payments
  • Remote Check Deposit
• Online Banking and Bill Pay Have Room to Improve
  • Small Businesses More Often Pay Bills Directly at the Biller
  • Small Business Owners Demonstrate Increased Loyalty When Opening Accounts Online
• Why Do Small Business Owners Change Financial Institutions?
  • Fees, Poor Customer Service and Branch Access Provide Impetus to Switch
  • Business Credit and Debit Card Strategy
  • Higher Need for Alerting Capabilities
  • Social Networking Builds Small Business Communities and Web 2.0
  • iPhone as a Versatile Tool for Under-banked Businesses
• Profile: Wells Fargo
• Appendix-Additional Charts
• Related Research
• Companies Mentioned

Table of Figures

• Figure 1: Under-Banked Small Business Segment “Grows” Consumers Into Small Banked Businesses
• Figure 2: Small Business Owners - With Business Account vs. Without Business Account
• Figure 3: Financial Product Ownership (UBB vs. Small Banked Business vs. All Consumers)
• Figure 4: Transfers by Method in the Past 30 days (UBB vs. Small Banked Business vs. All Consumers)
• Figure 5: Expedited Payment Usage (UBB vs. Small Banked Business vs. All Consumers)
• Figure 6: Desirability of Remote Capture (UBB vs. Small Banked Business vs. All Households)
• Figure 7: Online Banking and Bill Paying Last 90 Days (UBB vs. Small Banked Business vs. vs. All Households)
• Figure 8: Online Account Opening Loyalty by FI Customer (Small-Businesses vs. All Consumers)
• Figure 9: Reasons for Switching Financial Service Providers (UBB vs. Small Banked Business vs. All Consumers)
• Figure 10: Use of Credit Card Last 90 Days As Affected by Economy (UBB vs. Small Banked Business vs. All Households)
• Figure 11: Alerts Received in the Past 90 days (UBB vs. Small Banked Business vs. All Households)
• Figure 12: Marketing Payment Acceptance (and Merchant Services) to All Consumers
• Figure 13: Screenshot of Wells Fargo Small Business
• Figure 14: Last Visited Branch (UBB vs. Small Banked Business vs. All Households)
• Figure 15: Account Ownership by Income (UBB vs. Small Banked Business Owners vs. All Households)
• Figure 16: UBB vs. Small Banked Business Ownership by Age
• Figure 17: UBB vs. Small Banked Business Ownership by Gender
• Figure 18: Technology Product Ownership (UBB vs. Small Banked Business vs. All Households)
• Figure 19: Desired Alerts (UBB vs. Small Banked Business vs. All Consumers)

Companies Mentioned

• A+ Federal Credit Union
• American Express
• Authorize
• net
• Bank of America
• Bank of Hawaii
• Capital One
• Chase
• Digital Insight
• Discover
• Harris
• KeyBank
• MasterCard
• PNC
• Quickbooks
• US Bank
• Visa
• Wachovia
• Washington Mutual
• Wells Fargo