August 28, 2007; 01:12 AM
With over 25 million US small business owners turning to financial
services providers to help them to run their businesses, the small
business segment has become a key focus in the growth strategies of
many financial institutions. Banks, credit unions, and non-banks of all
sizes are chasing the small business market in an effort to capture a
share of this expanding customer segment. Yet new research from
TowerGroup underscores that not everyone in this race will be a winner.
Small business owners value financial services providers that are able to step up and make tangible contributions to managing their businesses. Banks that help small businesses save time and money, master financial management and navigate administrative services will earn the role of trusted advisor - and gain both customer loyalty and increased share of wallet.
TowerGroup notes that becoming a trusted advisor for the small business sector requires specialized resources, training, products, and services. The first step for financial institutions looking to increase small business market share is developing a comprehensive small business strategy that encompasses market potential, products, delivery channels, and marketing, sales and service. In order to maximize effectiveness of this strategy, financial services institutions must eliminate organizational conflicts - most often embodied in struggles over where to place the small business banking group within an institution's organizational chart. Other success factors include:
The new research report titled "The Race to Capture US Small Business Customers: Will Your Bank Be an Also-Ran?" by Patricia Hines, senior analyst in the TowerGroup Wholesale Banking practice, explores what small businesses are looking for from their financial services providers. It examines components of a comprehensive small business banking strategy, including winning approaches to increasing small business market share.
The report is available to qualified members of the press for review. To request a copy or to arrange an interview with Hines, please contact Thea Linscott at +1.212.455.8045 or [email protected]. Those interested in subscribing to a TowerGroup research service may call +1.781.292.5200 or email [email protected].
At TowerGroup, Hines' research examines small business banking and commercial lending with expertise across strategy, best practices, product management, delivery channels, and software applications.
About TowerGroup
TowerGroup is the leading research and advisory services firm focused exclusively on the financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world's leading financial institutions, technology companies, and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in North America and Europe, TowerGroup serves a global client base. Visit www.towergroup.com for more information.
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