Boston, December 15, 2011 – A new report from Aite Group analyzes the small-business need for business online-banking functionalities and helps banks make the case for migrating small businesses onto business platforms. Based on an August 2011 Aite Group survey of 291 U.S. small businesses, the report discusses the types of online capabilities that small businesses are interested in, the capabilities they are willing to pay for, and gaps in banks’ current online offerings. The report also suggests value-added services that banks can provide to small businesses.

The small-business customer segment has become a significant focus area for U.S. financial institutions. While financial institutions recognize that the needs of small-business customers have become more sophisticated, they struggle to determine the best course of action for supporting these valuable customers. Many continue to serve small businesses from the retail side of the bank; approximately 90% of small businesses are served via consumer online-banking platforms. While consumer platforms sufficiently support some small businesses, most are left with unmet needs and a perception that banks do not understand their business requirements.

“While succeeding in the small-business space requires a multi-channel strategy, a strong online strategy is critical,” says Christine Barry, research director with Aite Group and co-author of this report. “Any bank hoping to grow its penetration in the small-business space must work to migrate small businesses off consumer platforms and onto true business-banking ones.”

This 36-page Impact Note contains 35 figures and one table. Clients of Aite Group’s Wholesale Banking service can download the report.