Results from a study by consulting firm Simon-Kucher & Partners, “Monetizing Digital Banking Products for Small Business Customers,” indicate digital banking offers big benefits to small business that are often receiving the services for free when they would pay for the convenience.

“The small business customer is a huge untapped market for financial institutions,” said Jamie Zussman, Business Development Associate for RateWatch. “This report provides data and a framework for how financial institutions can deepen their understanding of this segment and create compelling packages and services for them.”

Important findings from the survey of small business customers include:

  • 34 percent have never used mobile banking, even though their financial institution offers it
  • 69 percent do not have a positive perception of mobile banking services offered by their institutions
  • Certain small business clusters have significantly higher willingness to pay for digital services than others
  • Customer satisfaction is directly correlated with the rate at which digital innovations or new digital features are introduced
  • There is a lack of “leader” features and high variance across all digital banking services, suggesting a bundling approach that is logically coherent but still allows for customization

To make the most of the market potential, the study suggested financial institutions need to develop systematic approaches to designing, pricing, and selling their offerings. Read more at CU Times.