NEW YORK, March 2, 2017 /PRNewswire/ -- Today, RateWatch, a
leading banking data and analytics service owned by TheStreet, Inc.
(NASDAQ:TST) and Simon-Kucher & Partners, a strategy and
marketing consulting firm, released the results from the
3rd Annual Monetizing Digital Banking Products for Small
Business Customers survey.
The survey report reveals important data on the small business
customer including their mobile usage, banking behaviors and
utility scores on 24 different banking services. It also shares
insights on willingness-to-pay and estimates the
likelihood-to-purchase at a series of price points for any given
service bundle. Behavioral segmentation was used to identify six
distinct clusters of small business customers including Not
Tech-Savvy, Consumer Type, Relationship-Driven, Unmet Needs-Willing
to Pay, High Perceived Value-Willing to Pay and No Potential.
"The small business customer is a huge untapped market for
financial institutions," said Jamie
Zussman, Business Development Associate for RateWatch. "This
report provides data and a framework for how financial institutions
can deepen their understanding of this segment and create
compelling packages and services for them."
"We need a systematic and structured approach to designing,
pricing and selling mobile banking solutions," adds David Chung, Director at Simon-Kucher &
Partners. "When these steps are managed separately, we find
suboptimal products that fail to meet revenue and profit goals, and
fall short of addressing customer needs."
The following are key findings based on the small business
customers surveyed:
- 34% have never used mobile banking, even though their financial
institution offers it
- 69% do not have a positive perception of mobile banking
services offered by their institutions
- Certain small business clusters have significantly higher
willingness to pay for digital services than others
- Customer satisfaction is directly correlated with the rate at
which digital innovations or new digital features are
introduced
- There is a lack of 'leader' features and high variance across
all digital banking services, suggesting a bundling approach that
is logically coherent but still allows for customization
An executive summary of the report is available online and
TheStreet's exclusive article can be found here.
Survey Methodology
The 2017 Monetizing Digital Banking
for Small Business Customers study is based on a total of 215
unique survey responses completed by U.S. based small businesses
(of up to $4.99 million in annual
revenues). More than 20 major industries are represented, including
retail trade, construction, finance, insurance, professional,
scientific, and technical services. More than 85% of respondents
are directly responsible for managing all of the day-to-day banking
for their business, and therefore are well-placed to respond to
questions around small business mobile banking solutions. All
survey responses were collected in the third quarter of 2016. A
range of statistical and analytical methods, including factor
analysis, cluster analysis, MaxDi analysis and conjoint analysis
were employed to develop key insights.
About RateWatch
RateWatch (www.rate-watch.com) is a
leading banking data and analytics service that provides
competitive interest rate and product information to financial
institutions across the United
States. In addition to deposit, loan, and fee data,
RateWatch produces product comparisons, financial strength
reporting, geographic anaylsis and specialty surveys/reports.
RateWatch is a business unit of TheStreet, Inc. (NASDAQ: TST,
www.t.st), a leading financial news and information provider. Other
business units include TheStreet (www.thestreet.com), which is
celebrating its 20th year of producing unbiased business
news and market analysis; The Deal (www.thedeal.com) which provides
actionable, intraday coverage of mergers, acquisitions and all
other changes in corporate control and BoardEx (www.boardex.com), a
relationship mapping service of corporate directors and
officers.
About Simon-Kucher & Partners
Simon-Kucher &
Partners is a global consulting firm with 1,100 professionals in 33
offices worldwide focusing on TopLine Power®. Founded in
1985, the company has more than 30 years of experience providing
strategy and marketing consulting and is regarded as the world's
leading pricing advisor. Financial institutions can utilize
Simon-Kucher & Partners' proven Monetizing Digital Banking
framework to ensure they can monetize their mobile banking
solutions.
Contact: Jon Kostakopoulos,
212-321-5561, jon.kostakopoulos at thestreet.com
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SOURCE TheStreet, Inc.