Credit Unions’ Online- and Mobile-Channel Strategies for Small Businesses
Report Summary
Credit Unions’ Online- and Mobile-Channel Strategies for Small Businesses
When it comes to winning small-business members, online- and mobile-channel offerings will be a vital tool in credit union arsenals.
Boston, January 8, 2013 – A new report from Aite Group examines credit unions' plans to deploy online- and mobile-banking capabilities as a means to win small-business members. Based on a Q3 2012 Aite Group survey of executives from 481 U.S.-based credit unions, 194 of which have small-business members, this report details credit unions’ planned investment levels in online and mobile banking.
Seeing an opportunity to fill the gap created by the decline in small-business loans made by larger banks, credit unions increasingly eye small businesses as a growth sector. Credit unions seeking to win small businesses’ banking business have an uphill battle, however—while about seven in 10 small businesses consider a top four or super regional bank their primary financial institution, credit unions have just 6% of the market. But credit union executives must do more than just dangle loans in front of small businesses to win them over. Credit unions should offer online- and mobile-channel offerings, which are a key priority for small businesses.
“Only a third of credit unions with small-business members consider their online banking offering to be ‘strong,’” says Ron Shevlin, senior analyst with Aite Group and author of this report. “Given the importance of the online channel as a factor influencing small businesses’ choice of financial providers, credit unions must differentiate their online- and mobile-banking offerings.”
This 17-page Impact Note contains 17 figures. Clients of Aite Group’s Retail Banking and Wholesale Banking services can download the report.