FORT ATKINSON, Wis.—Small businesses are not big fans of mobile banking.
According to a new survey of small businesses from RateWatch, conducted in the third quarter of 2016, 69% of respondents did not have a positive outlook on the technology. The study also found that 34% never used mobile banking even though it was available to them.
The RateWatch survey, which was conducted in collaboration with Simon-Kucher & Partners, highlighted a deficiency in designing, pricing and selling mobile banking solutions to small businesses, Small Business Trends reported.
“The disparate systems need to be part of a systematic and structured approach to bring in small businesses, because according to RateWatch, they are a huge untapped market for financial institutions,” Small Business Trends noted.
The third annual study covered 20 major industries, including retail trade, construction, finance, insurance, professional, scientific and technical services, surveying 215 U.S.-based small businesses that generated a maximum of $4.9 million in annual revenue.
“The wide range of industries highlights the issue is not related to one particular segment, which may indicate lack of awareness in the technology, with security fears playing a prominent role in discouraging some of these businesses from using mobile banking,” Small Business Trends said.
In a dramatic contrast, another survey by the Raddon Financial Group revealed 52% of businesses with up to $10 million in annual revenue rely on mobile banking to access and manage their accounts. And for Millennial business owners, the number jumps to 68%, with this group indicating mobile banking is a must have, Small Business Trends reported.