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Overview

This study evaluated the difference between business owners & non-owners and looked at how the two groups differed in regards to their use of financial services. A business owner was defined as anyone who owned or shared ownership in a privately held business that provided more than 50% of their household's total income.

Research Questions Covered in this 49 Page Consumer and Competitive Study Include:

• What retail product feature do consumers with business ownership interests value that might be used in the design of business account features?
• What characteristics of consumers with business ownership interests can be used for marketing business products and services?
• Are consumers with business ownership interests more or less loyal than others?
• What retail banking products are consumers with business ownership interests most likely to use?
• What transaction channels are consumers with business ownership interests most likely to use?
• What are the best products to sell consumers with business ownership interests?
• What indicators can be used to identify those with a high potential for business ownership within an institution's retail consumer base?

Table of Contents

• Industry Trends in Small Business
• Competitive Action Summary
• Profiling Business Owners
• Owners & Non-owners Value Different Services from their Financial Institutions
• Consumer Deposit and Loan Product Usage & Average Balances
• Retirement Product Most Commonly Used by Consumers
• Why Business Owners are More Profitable Credit & Debit Card Users
• Type of Financial Institution Preferred by Owners
• The Difference in the Use of Delivery Channels between Owners & Non-owners
• The Information Gathering Methods & Sources Preferred by Business Owners
• Reasons Business Owners Open & Close Checking Accounts
• Free Features Owners Favor with Free Checking
• Home Equity Differences between Business Owners & Non-owners
• Summary of Key Findings

Methodology

Commissioned by over 200 financial institution clients of the Raddon Financial Group (RFG), this syndicated research study explores consumer demand and usage of small business products and features.

Based upon 1,175 survey responses of a randomly drawn sample of members of a nationally representative direct mail panel, the consumer responses used in this study were weighted to reflect the nation’s demographic composition. The study’s confidence interval for any proportion gathered in the survey is in a range of 1.6% to 2.9% at the 95% level of confidence.

Optional Data Tabulations

RFG will provide a customized set of data tabulations using a segmentation scheme based on specific variables.