Enterprise Bank Finds SMBs Hungry for Mobile Banking
When Enterprise Bank began offering a mobile banking app designed by Fiserv with small business clients in mind, the uptake was far beyond expectations. Catering to business clients via mobile has several benefits, such as increasing loyalty and profitability and attracting millennial entrepreneurs.
“We had a lot of small business customers who also had personal accounts,” Brian Collins, Enterprise Bank senior vice president and director of operations, said in a Fiserv white paper. “They loved Mobiliti [the mobile banking app] on the retail side and wanted it for their businesses. They were looking for the same tools and services,” he said. But with partner Fiserv, Enterprise added features specific to on-the-go business clients, including the ability to approve or reject wire transfers, internal transfers and ACH transfers; approve or reject positive pay exceptions; and set up multiple levels of users.
The bank’s goal was to have 20 percent of its online business banking service users enrolled within the first year. Within six months, Enterprise Bank had reached 75 percent of its adoption goal, with 71 percent of users accessing the app monthly. A recent Raddon survey found that businesses that use mobile banking have more business deposit and loan accounts at their primary institutions and are more than twice as likely to seek a loan in the coming year, compared with businesses that don’t use mobile.
“Mobile banking is used by 66 percent of millennial-controlled businesses, and 58 percent of firms led by members of Gen X,” according to a Fiserv blog. Forty-one percent of millennial-led businesses indicate they would not use a community bank due to a perceived lack of online and mobile banking functionality. Of millennial businesses that don’t use mobile banking, 22 percent cite the lack of availability of banking features, according to Fiserv. Enterprise’s results suggest that providing mobile banking features that resonate with SMBs can be fruitful to long-term engagement.