Session
Description:
In the past few years micro and small businesses have
quietly left top-20 banks in droves. What has driven
the migration away from the top-20 banks? With the increased emphasis on the Internet, there has also
been a decline in personalized service among the top-20. There has been a significant drop in the number of micro and
small businesses that have a key contact at their primary
bank, and this decline has taken place exclusively among
top-20 banks.
This
session will use current research data to explore service
quality issues in the micro and small business market.
Agenda:
Vying for Small Business Relationships
The Top-20 Exodus
The Threat from Community Banks and Non-Banks
Service Trends
Where Are We Headed
Conclusions
Background:
Over the past five years, America’s financial institutions
have steadily developed robust online banking platforms
that are aimed at the small business market.
These products are Web-enabled, and feature-rich,
providing true cash management features, including ACH
payment modules, batch file processing, wire transfers
modules, security levels, and some even provide lockbox
information reporting, multi-bank reporting and access
to check images.
While
the commercial and corporate markets were early-adopters
for these products, evidence shows that the micro and
small business markets are finally moving towards these
products.
A
concurrent, and probably connected trend, that has quietly
taken place over the last few years is that micro and
small businesses have quietly left top-20 banks in droves. The biggest beneficiaries of this migration are community banks
with less than $500 million in assets; however, thrifts,
credit unions and other service-focused non-bank entities
also stand to gain.
What
has driven the migration away from the top-20 banks? With the increased emphasis on the Internet, there has also
been a decline in personalized service among the top-20. There has been a significant drop in the number of micro and
small businesses that have a key contact at their primary
bank, and this decline has taken place exclusively among
top-20 banks.
This
session will take a hard look at the primary financial
relationship, explore competitive forces that are at
play in the micro and small business markets, and provide
insight into what drives defection. Furthermore, Informa will take a look into the future and show
where the micro and small business market is headed,
and what financial providers can do to both maintain
customers and to build customer loyalty.
This program is appropriate for senior financial executives
with responsibility for Retail Banking, Small Business,
Affluent Marketing, Online Development, Product Development,
Marketing, Market Research and Strategy Teams.
Study
Methodology:
Information
contained in this presentation is based upon Informa’s
2002 Micro and Business Market Study.
Data in the study is based upon a nationwide
telephone survey of 944 micro market companies with
annual sales between $50 thousand and $999.9 thousand,
and 998 business market companies with sales between
$1 million and $19.9 million in sales. The survey was
conducted between January and June 2002.
Attendance
Fee:
$275.00 plus $50.00 per telephone line used.
About
Mike Marselli
Formerly Director of Business Financial Services and
Treasury Management Research at PSI Global in Tampa,
Florida, Marselli has over 13 years experience in the
financial services industry. He began his financial
career in 1987 with Dun & Bradstreet Information Services.
His background includes experience in business-to-business
market strategies, industry trend forecasting, e-commerce
trend analysis, and primary market research. He received
his Bachelor of Arts from Vanderbilt University, TN.
Mike can be reached at 1-866-546-3676, or at mmarselli@informars.com
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