1. A White Paper Based On:
The ath Power Mobile Banking Study™
By Michael J. McEvoy, Managing Director
CUSTOMER EXPERIENCE AND ATTITUDES, 2013
SMALL BUSINESS MOBILE BANKING
www.athpower.com
2. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
SMALL BUSINESS MOBILE BANKING:
CUSTOMER EXPERIENCE AND ATTITUDES, 2013
The ath Power Mobile Banking Study™
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3. During Q1 2013, 3,201 Mobile Banking Customers, including 196 small business customers, responded
to an online survey that set out to determine what factors make up an“ideal”mobile banking experience
for consumers and small businesses, and to uncover the impediments to producing such an experience.
Through this evaluation, consumers and business owners provided information about their current
mobile banking behaviors, the features and functionality they value or would like to see added, and
their assessment of their current mobile banking experience. Throughout this report, the sample size
(n-size) is 196 for figures based on responses from small business owners.
This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
BACKGROUND
KEY TAKEAWAYS
Compared to retail banking mobile users, small business mobile customers:
• Use mobile banking services more frequently
• Are far more willing to pay for mobile
• Are more likely to consider switching banks due to the quality of mobile offering
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Tablet use is so prevalent that banks should consider offering tablet-specific
apps to optimize customer experience for small business customers.
• More than 1 in 2 small business mobile customers access mobile banking using tablets
• 1 in 3 small business mobile customers regard mobile banking on a tablet as‘safer’than on a
smartphone
• Tablets offer the potential for an online-banking type of experience, but using a mobile device
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There is a significant gap between services that are currently available through
mobile and those that are most desirable to business owners. Stand-outs for
which access is particularly limited relative to customer interest:
• Being able to use mobile to check the credit worthiness of customers
• Accepting credit cards
• Paying business taxes
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4. SMALL BUSINESS MOBILE CUSTOMERS ARE MORE ENGAGED
WITH ‘MOBILE’THAN RETAIL MOBILE BANKING USERS
Mobile Channel Usage. The small business (SB) mobile customer is a more frequent user of
mobile services than the average retail mobile customer (see Figure 1) with almost two-thirds of SB
mobile customers logging in at least twice weekly (see Figure 2).
Figure 1 - Small Business Mobile Customers Access Mobile Banking Services More Often than
Retail Customers.
On average, how often do you use business mobile banking with your bank?
Source: The 2013 ath Power Mobile Banking StudyTM
This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
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5. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
Figure 2 - Almost 2 in 3 Small Business Mobile Customers Log-In at Least Twice Weekly.
They are about as likely to access mobile banking services while at home or in their office as they are
‘on the road’ (see Figure 3). This suggests that mobile banking has begun to rival online banking for the
attention of business customers, in environments where both online and mobile banking are likely to be
readily available (i.e. home and office). An implication is that financial institutions will need to provide a
customer experience that compares favorably with the online channel as its business customers migrate
to mobile or risk losing them to competitors.
Figure 3 - Small Business Mobile Banking Customers Access Mobile Banking Services From Wherever
They Are.
Source: The 2013 ath Power Mobile Banking StudyTM
Source: The 2013 ath Power Mobile Banking StudyTM
Frequency of Mobile Banking Logins
Where do you most often access business mobile banking?
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6. Role of Tablets. Part of the solution for some banks wishing to provide a customer experience that
compares well to that of online banking may involve tablets, given their adoption rates and similarities
with computer notebooks. In our study, one-half of small business mobile banking customers access
banking services using tablets, and 2 in 3 of such tablet users typically take the device with them when
away from home or the office (see Figure 4).
Figure 4 - Rising Tablet Use Offers Potential for an Online-Banking Type of Experience Through Mobile.
This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
With their bigger screens and easier keyboard options relative to smartphones, tablets offer the potential
for a customer experience on a mobile device that more closely resembles online banking than is possible
using a smartphone. In addition, business owners are far more likely than retail customers to view tablets
as‘safer’for conducting banking transactions than smartphones (see Figure 5).
Source: The 2013 ath Power Mobile Banking StudyTM
Which mobile devices do you use to access
your business mobile banking account?
Where do you typically use your tablet?
Source: The 2013 ath Power Mobile Banking StudyTM
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7. This takes on added importance given that almost one-half of small business mobile users are discouraged
from availing of certain mobile features due to concerns over security (see Figure 6). In short, many business
mobile customers use tablets for banking, they tend to have their tablet device with them wherever they
go, and a sizeable proportion view tablets as ‘safer’ than smartphones for conducting banking business.
Banks may therefore want to think about providing banking apps. for their business customers that are
designed specifically for tablet devices, with the goal of optimizing customer experience for the growing
proportion of customer using tablets for their business banking needs.
Figure 5 - Roughly 1 in 3 Small Business Mobile Customers View Tablets as ‘Safer’ for Banking Than
Smartphones.
This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
Figure 6 - Almost One Half of Small Business Mobile Customers Curtail Their Use of Mobile Banking
Over Security Concerns.
Source: The 2013 ath Power Mobile Banking StudyTM
Do you perceive the tablet as “safer” than a smartphone for
conducting banking transactions?
Do concerns over security discourage you
from using certain mobile banking services
(e.g. funds transfers, bill payment)?
Source: The 2013 ath Power Mobile Banking StudyTM
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8. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
Switching Banks Due to ‘Mobile’. The risk of customer flight due to a poor small business mobile
offering, mentioned earlier, appears real. Two out of three small business mobile customers would
consider leaving their current bank if they found an alternative with a superior mobile banking
offering (see Figure 7). In fact, small business customers are far more inclined to consider switching
due to mobile banking than are retail customers (see Figure 8), further emphasizing the importance
of mobile to the small business customer.
Figure 7 - Strong Majority of Small Business Mobile Customers Would Consider Switching Banks
Due to Mobile Banking.
Figure 8 - Small Business Customers Are More Inclined to Switch Banks Due to Mobile Banking
Than Retail Consumers.
Source: The 2013 ath Power Mobile Banking StudyTM
Source: The 2013 ath Power Mobile Banking StudyTM
How likely would you be to switch banks if you found another bank with
a superior business mobile banking offering?
How likely would you be to switch banks if you found another bank with
a superior business mobile banking offering?
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9. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
CONTINUOUS IMPROVEMENT OF THE MOBILE SERVICES
PROVIDED FOR THE SMALL BUSINESS MOBILE CUSTOMER IS
AN IMPERATIVE FOR RETENTION
The capabilities offered through mobile, and the ease and reliability of access to them, are at
the core of ‘customer experience’ for the business mobile customer. Clearly, they help determine
how business customers assess and view the mobile banking service provided by their financial
institution, relative to their expectations.
Services Offered. A large proportion of small business mobile customers are using the features
and capabilities currently available (see Figure 9). But they are ready for more. In fact, there is a
gap between the mobile services that small business customers are currently able to access and
those they would like to avail of (see Figure 10), including several stand-outs for which access is
particularly limited relative to customer interest:
1. Checking the credit worthiness of customers;
2. Accepting credit cards; and
3. Paying business taxes.
Banks will need to continuously improve their small business mobile offering by identifying and
adding these kinds of capabilities, or risk customer attrition to competitors with superior offerings.
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10. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
Source: The 2013 ath Power Mobile Banking StudyTM
Source: The 2013 ath Power Mobile Banking StudyTM
Figure 9 - Services Currently Provided Through Mobile Are Well Utilized by Small Business
Customers Eagerly Awaiting More.
Figure 10 - There is a Significant Gap Between Services that are Currently Available Through
Mobile and Those Most Desirable to Business Owners.
Types of Mobile Banking Transactions Conducted Recently by Small Businesses
Small Business Mobile Capabilities Currently Available and Most Desirable
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11. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
Source: The 2013 ath Power Mobile Banking StudyTM
Technical Issues. Not to be forgotten is the need to ensure reliability and ease of use of mobile
banking services. Even among the largest banks, technical issues, including possible denial of service
attacks, can bring down or considerably disrupt mobile banking service for the entire customer base.
At the individual customer level, issues may arise with particular capabilities, such as funds transfers
or bill payment. Overall, almost one-half of small business customers reported they encountered
technical issues with their mobile banking service over the past year (see Figure 11). Although the
problem was ultimately resolved for most of these users, the fact that so many customers experienced
problems during the year is a cause for concern.
Figure 11 - Almost One-Half of Small Business Customers Experienced Some Problem(s) with
Mobile Banking Within the Past Year.
Have you experienced technical problems in using
mobile banking in the last 12 months? Was the problem resolved to your satisfaction?
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12. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
SEVERAL EMERGING FEATURES AND CAPABILITIES WILL HELP
DRIVE SMALL BUSINESS ADOPTION AND USAGE
Small business mobile is relatively new and remains under-developed, with most banks focusing until
recently on retail mobile. Looking ahead, mobile adoption and usage by the small business customer
will accelerate as capabilities are added and emerging technologies are deployed, including:
Remote Deposit Capture. Arguably the mobile banking feature that has attracted the most
attention from customers to date is Remote Deposit Capture (RDC). As its rollout continues across
the banking industry, roughly half of the small business mobile customer-base have used RDC within
the past year. Among those who have yet to try it, the most common reason for not doing so is that
their financial institution does not yet offer it (see Figure 12).
Figure 12 - Half of the Small Business Customer Base Has Used RDC Within the Past Year.
Source: The 2013 ath Power Mobile Banking StudyTM
Voice Authentication. Voice authentication is a system that verifies a caller’s identity during the
course of a conversation by recognizing the caller’s voice and speech patterns. Given that almost
half of the small business mobile customer base are discouraged from using certain mobile banking
capabilities due to concerns over security (see Figure 6, earlier), voice authentication may have a
role to play in allaying those fears for at least some users. In fact, almost one-half of small business
customers say that voice authentication would encourage them to use more mobile banking
services, such as funds transfers and bill payment (see Figure 13).
Have you used Remote Deposit
Capture at your bank?
Why have you not used it? (Select all that apply)
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13. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
Source: The 2013 ath Power Mobile Banking StudyTM
Figure 13 - Voice Authentication May Have a Significant Role to Play in Encouraging Mobile
Adoption and Usage.
Voice Recognition. Voice recognition (i.e. using voice to interact with mobile services, rather
than typing or swiping on a mobile device) has been introduced at a small number of financial
institutions, for use by retail customers. Our study indicates that if introduced, it, too, would attract
more customers to mobile banking and encourage greater utilization of mobile services by the small
business customer (see Figure 14).
Figure 14 - Voice Recognition Will Make Using Mobile Services Easier and More Efficient for Some,
and Therefore Encourage Usage.
Would voice authentication encourage you to
use more mobile banking services?
Would voice recognition encourage you to use
more mobile banking services?
Source: The 2013 ath Power Mobile Banking StudyTM
Mobile Photo Bill Pay. Mobile Photo Bill Pay has recently been deployed for use by retail
mobile customers at several banks and credit unions. It may have particular added appeal to small
business owners, who are typically hard-pressed for time and would value the potential time-savings
associated with photo bill pay: previous studies conducted by ath Power indicate that small business
owners are especially receptive to services that save them time.
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14. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
Source: The 2013 ath Power Mobile Banking StudyTM
MONETIZING ‘SMALL BUSINESS MOBILE’ WILL BE AN EASIER
TASK THAN DERIVING REVENUE FROM ‘RETAIL MOBILE’
Small business customers are accustomed to paying for banking services and our study indicates that
more than 2 out of 3 would be willing to pay a monthly fee to access mobile banking (see Figure 15).
In fact, small business customers are prepared to pay for mobile banking at almost double the rate
of retail customers (see Figure 16).
Figure 15 - Almost Two-Thirds of Small Business Mobile Customers Are Willing to Pay for Mobile
Services.
What is the most you would be willing to pay per month for the
convenience of business mobile banking capabilities?
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15. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
Source: The 2013 ath Power Mobile Banking StudyTM
Source: The 2013 ath Power Mobile Banking StudyTM
Figure 16- SBOs Are Considerably More Inclined to Pay for Mobile than Retail Customers.
Alternatively, some small business customers also express a willingness to pay for mobile services on
a per transaction basis, with one in three (34%) indicating that they would be prepared to pay fees
for “premium” services such as remote deposit.
If, instead, banks were to begin charging customers for using channels other than mobile, one in four
say they would leave their bank but a greater proportion, one in three, say they would make greater
use of mobile services (see Figure 17).
Figure 17 - One in Three Small Business Mobile Customers Would Make Greater Use of Mobile
Banking Services if their Bank Charged Them to Use Channels Other Than ‘Mobile’.
Monthly Amount Customer is Willing to Pay for Mobile Banking Services
Would you make greater use of mobile banking services if your
bank charged you for using channels other than mobile?
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16. This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
CONCLUSION
Clearly, there is an opportunity for financial institutions to obtain a return on their investment in
mobile banking by charging their small business customers for using it. It is a double-edged sword,
however, as our research indicates that business customers are more prone to consider leaving their
bank if their mobile banking experience would be ‘better’ at a competitor. Paying customers may be
more inclined to consider alternative providers.
Banks with superior mobile offerings are therefore better positioned to charge for mobile and that,
may indeed, be the key to charging for mobile: continuously improving capabilities offered, and
adding highly desired features such as RDC and photo bill pay that help ensure a customer experience
that at least matches that of major competitors and offers value-added beyond online banking.
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17. ABOUT ATH POWER CONSULTING
ath Power Consulting is the premier provider of customer experience solutions for the financial
services industry, offering survey research, audit and mystery shop study, competitive intelligence,
market analyses, training and development, and strategic brand planning. ath Power owns the
largest panel of financial services field representatives in North America and executes more
proprietary banking audits than anyone in the industry. Since 1997, our fully customizable solutions
have helped improve customer retention, build brand loyalty and increase profitability, performance
and market share for banking, credit card, mortgage, insurance and investment organizations across
North America. To learn more, please visit www.athpower.com.
For more information on this study or any of our other solutions, please contact:
Jessica Hamel
+1.978.474.6464, Extension 107
jhamel@athpower.com
This confidential business summary document has been prepared by ath Power Consulting Corporation and is furnished for informational
purposes only. The recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose, and not to disclose any of
its contents to third parties without written permission of ath Power Consulting Corporation. © 2013 ath Power Consulting Corporation.
ABOUT THE AUTHOR
Michael J. McEvoy - Managing Director
Michael J. McEvoy has over 15 years of experience consulting to many of the largest financial
institutions and their technology suppliers worldwide. Prior to joining ath Power, Mike served as
Principal and Head of Banking Research for Novarica, a division of Novantas. Additionally, he spent
six years consulting to MasterCard and its member banks, and was also a founding analyst at both
TowerGroup and MasterCard’s Purchase Street Research. He holds a Bachelors degree in mathematics
and economics and a Master of Economic Science degree from University College, Cork, Ireland and
an MBA from the Wharton Business School at the University of Pennsylvania. Mr. McEvoy may be
reached via email at mmcevoy@athpower.com.
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