SOURCE: MarketResearch.com

MarketResearch.com

August 31, 2010 08:08 ET

Banks Increase Focus on SMB Markets

ROCKVILLE, MD--(Marketwire - August 31, 2010) -  MarketResearch.com has announced the addition of MarketsandMarkets's new report "Small Business Banking Trends In the U.S." to their collection of Banking & Financial Services market reports. For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=2700303

Small businesses operating in the U.S. currently number at 29 million; and a major portion of these require financial solutions such as cash and credit management, trade financing, payroll processing, and treasury services. Banks that successfully targeted the small business segment have earned higher net interest margin (NIM) and return on assets (ROA).

Banks trying to gain a competitive edge and a bigger share of the small business markets have to be cognizant of various behavioral, economic, regulatory, and technological challenges. Banks also need to design their product portfolio to match the specific requirements of small businesses and also determine the best channel to deliver their products.

Bankers are focusing on direct marketing to meet the high financial challenges, i.e. the cost of serving small business owners. Acknowledging that the cost of serving new customers is almost 10 times the cost of serving existing customers, most small business bankers are now involved in up-selling and cross-selling of services to existing customers. The current economic environment has changed the landscape for small businesses. Banks also need to provide them the right product at attractive cost, and learn how to evolve their risk profile to accommodate a wider audience.

'U.S. Small Business Banking Trends' is a study of small businesses using banking products and the changing trends in small business banking. The study is designed to provide insights on the behavioral aspects of the small businesses towards the banking products offered by large as well as small banks.

For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=2700303

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