By: Julie Story
Mobile banking features have generally been geared toward younger, wealthier and tech-savvy demographics, but a new analysis suggests that many small businesses are also considering this option as a crucial money management option.�
According to a report in Bank Systems and Technology magazine, small businesses are seeking out ways to cut costs, improve financial management and experience more convenience in their day-to-day dealings. This may afford banks and credit unions the opportunity to appeal to and service their small business clients in the future by linking company accounts to business owners' mobile devices. Many companies are already relying on these applications to receive alerts and approve payments, the news source reports.�
Patricia McGinnis, director of the commercial and enterprise payments solution at Mercator Advisory Service, told BankTech that companies are�taking a cautious approach toward mobile banking because some concerns regarding security still exist. For example, many IT departments are still determining how to protect mobile devices that are used for company purposes. Most banks and credit unions have been forthcoming with tips and guidelines for protecting mobile devices from being accessed by fraudsters, and this may be even more important with business clients.�
Analysts note that in the future, banks and credit unions may need to consider offering small business banking programs that incorporate mobile features to remain competitive in an evolving market. However, McGinnis explained that most banks were still in the same stage of determining how to offer innovative mobile solutions to their corporate clients while maintaining the level of strict security that is necessary to protect these more complex accounts.�
"I would say everybody is moving a little more cautiously in the corporate than in the consumer space because there is larger amounts of money moving, and the technology is evolving so fast," McGinnis told BankTech.�