Small Business Internet Banking Practices Revealed in New In-Depth Report From Barlow Research Associates, Inc.

Apr 16, 2001, 01:00 ET from Barlow Research Associates, Inc.

    MINNEAPOLIS, April 16 /PRNewswire/ -- E-marketplaces, account aggregation
 and investment accounts offered as part of a bank's Small Business Internet
 Banking service are of little interest to Small Business owners.  Fewer than a
 quarter of small businesses said that it was either a top priority or very
 important for their bank to offer these services on their Web site.
     When Barlow analysts asked 1033 small businesses to rank the importance of
 18 different Internet Banking features for their primary bank's Web site to
 offer, only a handful of basic banking functions emerged as "critical" to
 small business owners -- the ability to check the balance in their checking
 account, view a list of checks and deposits that have cleared, transfer funds
 between accounts, provide a combined statement with information from all
 accounts at their primary bank and place a stop payment on a check.
     Small Business Bankers may have trouble identifying their clients who are
 open to banking online because most demographic statistics are not strong
 indicators of Small Business Internet Banking use.  Despite conventional
 wisdom, there is little difference in percentage of Internet banking use by
 small businesses in various sales volume ranges, in different regions of the
 country or by type of primary institution.  However, small business bankers
 can use certain "new economy" business practices to predict their clients'
 willingness to adopt Internet Banking.
     Barlow Research also found that while Small Business Internet Banking
 Users are less satisfied with their primary bank across all traditional
 channels of contact, they are heavy users of their bank's services and are
 twice as likely to have purchased an additional service from their primary
 bank during the last year.
     "Even though Small Business Internet Bankers are still a minority of all
 small businesses, these small businesses are such good customers and are so
 connected to their bank that it would be foolish for any financial institution
 to ignore their needs, at their Web site or in the branch," said Kelly
 Clausen, Barlow Research Associates small business research analyst.
     This information and much more about small business use of Internet
 Banking is included in Barlow Research Associates Inc. (BRAI) In-Depth Market
 Analysis Report:  Small Business Internet Banking.  In this report, Barlow's
 Small Business Research analysts examine all aspects of Small Business
 Internet Banking use including product and channel use, barriers to Internet
 Banking adoption, indicators of Internet Banking use and an analysis of bank
 Web site features.
     This In-Depth Market Analysis Report can be purchased individually.
 Please visit http://www.membershipresearch.com or call MRG at 952-545-6620 to
 order your copy of this report today.
 
 

SOURCE Barlow Research Associates, Inc.
    MINNEAPOLIS, April 16 /PRNewswire/ -- E-marketplaces, account aggregation
 and investment accounts offered as part of a bank's Small Business Internet
 Banking service are of little interest to Small Business owners.  Fewer than a
 quarter of small businesses said that it was either a top priority or very
 important for their bank to offer these services on their Web site.
     When Barlow analysts asked 1033 small businesses to rank the importance of
 18 different Internet Banking features for their primary bank's Web site to
 offer, only a handful of basic banking functions emerged as "critical" to
 small business owners -- the ability to check the balance in their checking
 account, view a list of checks and deposits that have cleared, transfer funds
 between accounts, provide a combined statement with information from all
 accounts at their primary bank and place a stop payment on a check.
     Small Business Bankers may have trouble identifying their clients who are
 open to banking online because most demographic statistics are not strong
 indicators of Small Business Internet Banking use.  Despite conventional
 wisdom, there is little difference in percentage of Internet banking use by
 small businesses in various sales volume ranges, in different regions of the
 country or by type of primary institution.  However, small business bankers
 can use certain "new economy" business practices to predict their clients'
 willingness to adopt Internet Banking.
     Barlow Research also found that while Small Business Internet Banking
 Users are less satisfied with their primary bank across all traditional
 channels of contact, they are heavy users of their bank's services and are
 twice as likely to have purchased an additional service from their primary
 bank during the last year.
     "Even though Small Business Internet Bankers are still a minority of all
 small businesses, these small businesses are such good customers and are so
 connected to their bank that it would be foolish for any financial institution
 to ignore their needs, at their Web site or in the branch," said Kelly
 Clausen, Barlow Research Associates small business research analyst.
     This information and much more about small business use of Internet
 Banking is included in Barlow Research Associates Inc. (BRAI) In-Depth Market
 Analysis Report:  Small Business Internet Banking.  In this report, Barlow's
 Small Business Research analysts examine all aspects of Small Business
 Internet Banking use including product and channel use, barriers to Internet
 Banking adoption, indicators of Internet Banking use and an analysis of bank
 Web site features.
     This In-Depth Market Analysis Report can be purchased individually.
 Please visit http://www.membershipresearch.com or call MRG at 952-545-6620 to
 order your copy of this report today.
 
 SOURCE  Barlow Research Associates, Inc.