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Small and Microbusiness Strategy Matrix

In theory, small and micro businesses represent one of the most lucrative,
and relatively untapped, sources of incremental business. The reality is that
most small and even mid-size businesses are too busy to spend much time changing
banking relationships, unless they are a pre-startup1
and/or shopping for a credit line or loan. As we outlined in OBR 107/108, a
product offering optimized for business will differ somewhat from one built for
consumers. The following chart summarizes the product options for small- and
microbusinesses. See our prior report for more detail on each feature. The
options are divided into nine categories:

1.       Statement data: viewing and organizing balance

2.       Customer service: customer care delivered over the Internet

3.       Accounting services: financial management tools

4.       Payments and billing: e-checks, bill pay, email payments, ACH,
wires, invoicing, card processing

5.       Security/privacy: privacy, security, permissions, guarantees

6.       Lending: business tools, news, information

7.       Website content/features: non-financial tools and information

8.       Alerts: email, fax, telephone, and mail activity- and balance-level
alerts

1Pre-startup: The time immediately preceding business startup
phase. One of the first things an entrepreneur will do is open separate bank
account(s) for a new business venture; it helps keep records straight for
tax-reporting purposes. So it does little good to target any startup, since
most will already have business banking relationships established; you
really need a foot in the door in “pre-startup” mode, when the kernel of an
idea is just forming (see OBR 107/108, for ideas on how to target
pre-startups).

  

Online Services for Microbusinesses
checkmark = must have feature; R = recommended feature; O = optional feature


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Source: Online Banking Report, 9/04 checkmark = must have feature; R =
recommended feature; O = optional feature