When it comes to mobile banking use and potential, small business owners are a valuable target market. Recognizing this potential will provide the justification for building enhanced mobile business banking solutions.

While mobile banking has been readily adopted by consumers, adoption by small businesses has been even more impressive. According to a survey of small businesses conducted by Raddon Financial Group, mobile banking usage has now surpassed the halfway point among small businesses in the U.S.

The survey showed that 52% of businesses with up to $10 million in annual revenue rely on mobile banking to access and manage their accounts. For millennial business owners, mobile banking is even more of a must have, with 68% using their smartphones to conduct banking operations.

It is no surprise that small businesses have taken to the mobile channel in high numbers, as it allows business owners who are often short on time to manage their day-to-day banking activities on their own terms. Among small businesses surveyed, 80% of those using mobile banking said it saves them a significant amount of time.

The adoption stats are interesting, but why should financial institutions care? There’s a multitude of reasons, but let’s start with the five that are most important.

1. Small Businesses Love Mobile Technology

More than half (56%) of small businesses indicate a financial institution’s technology resources have a significant impact on their decision to use that institution’s services. The impact of technology increases as the size of the business grows, with larger businesses placing even more emphasis on technology.

To date, mega-banks are dominating small business market share with 68% of all primary business banking relationships. By comparison, only 41% of retail consumers cite a mega-bank as their primary financial institution.

Technology such as online and mobile banking offerings have played a role in mega-banks capturing more than their fair share of the desirable small business market. Other financial institutions will need to bridge this technology gap in order to compete.

2. Mobile Banking Builds Satisfaction and Loyalty

Mobile banking fosters deeper relationships and increases satisfaction with the financial institution. Nearly one-half (46%) of small businesses that use mobile banking say that their satisfaction with their primary financial institution has increased since they started using mobile banking. At the same time, 50% of mobile banking businesses feel that their use of mobile banking has made them more likely to remain with their financial institution ...