Small business online banking usage increases, says Informa

Small business online banking usage increases, says Informa

Online banking usage amongst US small businesses has doubled in the last twelve months, according to a new study by Informa Reseach Services.

The study of 2000 companies defines micro market companies as businesses with annual revenue between $50,000 and $999,999. Business market companies are those with annual revenue between $1 million and $19,999,999.

The research found that micro market usage of online banking increased at a rate of 70 per cent from 2001 to 2002 and business market usage grew at the rate of 95 per cent. The growth rate in the micro market is particularly astounding considering that online banking usage was relatively flat for the five years prior to 2002, notes Informa.

However, Mike Marselli, manager of the Informa Research Services study, warns: "The vast majority of businesses that bank online use the services for balance reporting and viewing transaction details. The branch and telephone are still the primary channels of choice for other transactions, such as payment initiation, problem resolution, and purchasing additional services."

"Banks must continue to educate their small business customers to use all available online services if they really expect to make a serious dent in their reliance on branch offices," concludes Marselli.

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