Boston, MA, November 5, 2007
– A new report from Aite Group, LLC examines the changing attitudes banks are taking toward small-business customers and the evolving strategies being adopted to appeal to the segment.
Specifically, the report analyzes Bank of America's small-business banking strategy, the bank's recent entrance into the social networking space, and outlines how the bank achieved its
leadership role in small-business banking through customer understanding and appropriate product offerings.
According to the report, titled "Becoming a Trusted Advisor: The Evolution to Bank of America's Small Business Online Community," only recently have banks
begun considering the unique needs of small-business customers. Now, to woo this lucrative segment, banks are developing online banking applications specifically for the small
business, and are offering products such as remote deposit, health savings accounts, payroll cards, and online payroll. By using both innovation and a strong understanding
of small-business pain points, Bank of America has been able to not only differentiate itself in the marketplace, but also continue to grow small-business revenues. The
launch of Small Business Online Community, an unbiased social networking site powered by Bank of America in which small businesses can share ideas, get expert advice and
learn from each other, illustrates the bank's desire to be more than simply a provider a banking products and transactions but instead, a trusted partner and advisor.
"Banks need to use innovation to set themselves apart from their competitors in today's challenging small-business banking marketplace," says
Christine Barry, research director for Aite Group and author of this
report. "Bank of America serves as a good example of a bank that continues to think 'outside the box' by applying its knowledge of small-business needs to
the creation of new products and services. Those banks not willing or able to follow a similar approach will find it increasingly difficult to retain existing
customers and grow their businesses in the future."
This 13-page Impact Note contains four Figures. Clients of Aite Group's Wholesale Banking Service can download the report by clicking
on the icon to the right.
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