The SMB Mobile Banking Vacuum

Mobile banking has become an almost indispensable aspect of consumer banking, yet only a third of SMBs use it as a tool to help them run their businesses. Is it for lack of interest or lack of availability?

A recent Bank Systems & Technology article discussed how financial institutions can no longer ignore SMBs when it comes to things like mobile banking. The news source cited a survey that found that approximately 32 percent of firms bank via a mobile device, while another 31 percent are likely to do so.

“Though they use their mobile devices to check balances, the greatest value proposition to small-business owners is the ability to approve payments and conduct banking transactions while out of the office,” the news source explained.

Specifically, of those surveyed that were solely B2B, 26 cited mobile as one of their top three investment areas.

Another recent survey found similar results, showing that more small businesses are looking toward mobile banking for their financial needs. According to the report, 34 percent of surveyed enterprises use mobile banking a weekly basis, while only 18 percent said that they saw no need for the feature.

Additionally, the survey showed that Most small businesses would prefer to pay a monthly fee for unlimited transactions for informational services, transactional services, and advanced interactive services.

“A wide range of small businesses are willing to pay for more advanced mobile banking features, but most financial institutions are only offering free basic services,” said Jamie Zussman, Business Development Associate for RateWatch, which conducted the survey.

According to the RateWatch results, small businesses reported that accessing account information, receiving alerts and receiving service guarantees and knowing how they are protected are their top priorities when it comes to mobile banking. In terms of transactional services, surveyed companies said that depositing checks, reporting/blocking lost/stolen cards and transferring money between accounts – to optimize savings a portfolio or to pay off a loan – were the most important.

Just last month PYMNTS.com discussed how B2B businesses are looking to expand their online reach. According to an analysis of nearly 10,000 firms across 145 countries, nearly 40 percent of businesses are seeking to reach new geographic markets or expand their online presence instead of focusing on existing-market customers.

Additionally, 12.5 percent want new partners to help them diversify their product range and application, more than 10 percent are seeking a partner to help them raise capital, and 3 percent are preparing to explore an exit and require external parties to assist in that process.