Small and Microbusiness Strategy Matrix (NetBanker)

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