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Studies

66% of Businesses Would Switch Institutions for Better Mobile Banking

Mike Randall 3/1/16

It seems small businesses have little loyalty to their current financial institutions and would likely switch for a better mobile banking option.

At least that’s the assertion of a recently published study led by a Boston-based financial services research company.

According to ath Power Consulting, 66 percent of small business owners said they would switch banks if the new institution had a superior mobile banking offering.

The study went on to show 37 percent of bankers did not even mention their bank’s mobile offering when meeting with small business owners.

According to Frank Aloi, CEO of ath Power, “Mobile represents opportunities and challenges for banks to attract and retain small business clientele.”

“Sixty-six percent of businesses would

switch banks for superior mobile banking.”

Mobile banking has become increasingly important to owners of small businesses in recent years, as new technology has offered increasing point-of-sale options.

“Banks with mobile offerings tailored specifically for small business will achieve success by delivering differentiated features and functionality not available in standard mobile banking services,” Aloi said.

It is important to small business owners that banks understand their needs and work to meet them. It is also important for banks to build a rapport with small businesses.

According to the study, more than 90 percent of businesses that reported bankers showing an interest in their business needs would consider becoming a customer of that bank.

Source: cutimes.com. Photo source: buyerzone.com

About Mike Randall
Mike Randall is most knowledgeable in the areas of credit scores and credit cards, having written on those topics and others for the past eight years. He graduated from California State University with a degree in English literature, and he has an extensive background in personal finance studies. When he's not keeping BadCredit.org readers informed of changes in the subprime market, Mike’s hobbies include sailing and gourmet cooking. Connect with Mike on Google+.
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