A new study by BAI Research found that small businesses still do most of their banking at local branches. Consumers might be going mobile, but small businesses still prefer old-fashioned face-to-face banking.
From the story:
Small businesses continue to interact with- and transact at their branches. More than half of all business transactions are conducted at a branch. Small businesses also show a strong preference for in-person and live agent phone conversations with their financial institutions, which drives them to greater branch usage. And for financial marketers, branches continue to be the best venue to acquire new business relationships.
Unlike retail consumers, the research found that less than 25% of small businesses surveyed use mobile banking with only 8% using mobile bill pay.
As the story notes, before banks eliminate branches because of lighter traffic, they should consider the effect that eliminating branches might have on their small business clientele.
To read the full story at The Financial Brand, click here.