By offering mobile banking services, banks can encourage their small business customers to upgrade from low-margin retail banking platforms to a higher-margin, higher-value cash management platform.

For years, banks have been seeking the answer to the pressing question: how can they convert their small business customers from low-margin retail banking platforms to a higher-margin, higher-value cash management platform? With so many small businesses, and the continual expansion of this market, the potential is huge. But try as they do, few banks have found a true motivator to get these small businesses to switch from a low cost banking service. Mobile business banking just might be the answer.

Research clearly shows that the small business owner is likely to adopt mobile banking applications. A survey Aite Group conducted in October 2010 found that 30% of companies with revenues less than $10 million would use mobile corporate banking services. These folks are often out and about during the business day: at a job site, a client's office, or just about anywhere besides sitting behind their desk, if they even have one. For small business owners, having access to banking information and services during the business day will offer an unprecedented level of control and convenience. And with the speed in which tablet devices like the Apple iPad are being adopted by small business, mobility is clearly an opportunity for bankers to attract new small business customers as well as to migrate existing ones from the retail to the cash management platform.

A recent survey we conducted to over 180 bankers, showed that 60% believe it will take just two years for two thirds of the world's top 100 banks to offer mobile corporate banking, with 86%offering the service within three years.

Some 77% of the bankers surveyed agree that offering business banking services that can be managed via a mobile device is an incentive that will indeed be valued by small businesses.

Considering the money spent on mobile voice and data services today, imagine what a small business would be willing to pay for anytime, anywhere access to the full array of business banking services that will make them more productive. Offering mobile business banking services is beneficial for both banks and their small business customers: banks can better serve the market and reap the benefits of higher-margin services, while small business owners can manage their banking with ease and accessibility from their mobile device.