Brokerage Business Accounts for Small Businesses Are Far from Prevalent at Major Brokerage Firms, Says New Report from Corporate Insight

August 22, 2006; 08:12 AM

"Small Business" has recently become the next big thing in financial services - from credit cards to checking accounts, to payroll services and bill payment - many believe that this market segment is vastly underserved, and a prime target for growth. Traditional and discount brokerage firms, however, appear to be only in the early stages of serving this market. In a newly released report, Corporate Insight examined brokerage business accounts available to small and medium-sized businesses at fourteen major brokerage firms. The findings were surprising.

"In our research, we found few firms that actually had fully functional small business brokerage platforms versus those that were designed for individuals and simply re-labeled as small business," said Michael Ellison, EVP at Corporate Insight and author of the Broker Monitor report. "Somewhere in between, were two companies that offer "hybrid" accounts that combine banking services with some investment options. Ironically, despite the overall shortfall in the marketplace of the full service platforms, most of the firms we talked to assured us that they did indeed offer brokerage accounts for small businesses, even if they were nothing more than accounts designed for individual investors."

In this 53 page in-depth report, entitled: "Business Investor/Cash Management Accounts", Corporate Insight looks at business brokerage account capabilities at fourteen major brokerage firms. It includes detailed findings of each firm's offerings, analysis, and recommendations to the industry on how to improve or enhance their products and services for the small and mid-sized company market.

For more information on this research and related services, please visit: www.corporateinsight.com.

About Corporate Insight

Corporate Insight (www.corporateinsight.com) is a leading provider of competitive intelligence, analysis, and consulting services to the financial services industry. Founded in 1992, the firm has a blue-chip client base of industry leaders who rely on the company's commentary and insight gleaned through years of research examining the issues and trends that have shaped the industry. CI monitors the top firms on an ongoing basis, measuring, analyzing, and communicating industry best practices. Its products include Bank Monitor, Broker Monitor, Credit Card Monitor, e-Monitor, Mutual Fund Monitor, and Mutual Fund Advisor Monitor, as well as custom project work.