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Banks & the small-business segment 5/8 Aite Only ½ of surveyed small businesses are ‘extremely satisfied’ with the level of customer service, online banking capabilities & ease of use of the online banking applications provided by their financial institutions. Aite provides an in-depth look at where small businesses bank, & the factors they consider when selecting a financial institution. The report looks at the overall level of satisfaction these businesses have with their primary institutions & their institutions’ offerings, & breaks down small businesses’ preferred channels & willingness to pay fees. It identifies which banking products small businesses most often use & plan to use in the coming months. Part of a series of reports looking at the banking needs of small businesses, this report is based on a 11/07 survey of 303 small businesses by Aite. Small businesses have become a major target market for financial institutions of all sizes. This once-ignored customer segment is growing in sophistication, & requires advanced financial products. Aite forecasts that small businesses will spend almost US$400b on financial products this year, a number expected to exceed US$475b by 2010. To reap the benefits of this potential revenue stream, financial institutions must take greater steps to better understand the specific needs & banking preferences of these businesses. Only about ½ of surveyed small businesses are ‘extremely satisfied’ with the level of customer service, online banking capabilities & ease of use of the online banking applications provided by their financial institutions. In other areas, the % declaring extreme satisfaction is far less. ‘While US financial institutions have made progress over the last couple of years toward understanding & serving small-business customers, more needs to be done,’ says Christine Barry, Aite. ‘Significant gaps continue to exist between customer needs & products offered, & most US financial institutions fail to provide the highest levels of satisfaction to their customers.’