BBVA Compass courts micro-businesses with mobile package
29 July 2013 | 2792 views | 0
Source: BBVA Compass
BBVA Compass today introduced its Business Mobility Bundle, designed to provide micro-businesses - the smallest of small businesses - everything needed to manage their finances on the go.
Representing about 95 percent of all small businesses, micro-businesses are extremely mobile, with many of their financial transactions occurring away from owners' homes or offices. Micro-businesses typically generate less than $500,000 in annual revenue.
"Owners of these businesses often have no employees and very little time to visit bank branches, even for routine transactions like making deposits," said Lonnie Hayes, small business segment director for BBVA Compass. "We saw an opportunity to provide a much-needed solution designed with their unique needs in mind."
The new bundle includes an e-Business Checking account, online and mobile banking, and a merchant Mobility Pack® with a secured card reader for processing debit and credit card payments.
The merchant Mobility Pack requires a compatible mobile device, so the bank is giving away the Samsung Galaxy Tab® 3 7.0 to qualifying new customers who open e-Business Checking accounts through Sept. 30. The latest tablet from Samsung, the 7-inch Galaxy Tab® 3 offers a compact, powerful and secure mobility solution for small businesses, including access to a wealth of productivity applications.
Micro-businesses include startups and single office/home office (SOHO) businesses such as landscapers, photographers and service consultants. They generally have basic banking needs and generate low monthly transaction volumes.
Hayes said the bank's research shows that these business owners are becoming increasingly comfortable with technology, using smart phones and tablets to manage their personal lives and looking for the same conveniences to run and grow their businesses.
"That's exactly what this new account offers: banking anywhere, anytime and using a device they choose," said Hayes. "It was built with the needs of the micro-business in mind, and that truly sets it apart."
BBVA Compass recently performed 300 online interviews with micro-business owners to test the appeal of the Business Mobility Buobility Bundle and the Galaxy Tab 3 promotion.
"The reaction to the bundle was overwhelmingly favorable, with nearly seven out of 10 respondents identifying it as appealing and unique," Hayes said.
Hayes said the bank also will use recent research findings to help inform the development of expanded micro-business offerings and programs, including customized education seminars.
The Micro-Business Segment By the Numbers
The U.S. Census Bureau reports nearly 28 million micro-businesses operating in the U.S., 36 percent of which operate in BBVA Compass' seven-state Sunbelt footprint.
According to a recent study by ath Power, owners of micro-businesses view a significant proportion of the services provided by banks as largely irrelevant to their business needs.
The study reports that nearly two out of three micro-business owners often use their personal checking accounts for business purposes, while nearly half fund business purchases with their personal credit cards.
Fewer than one in five small business customers are "very satisfied" and nearly half are "neutral" on the question of whether their bank understands their needs and challenges, according to ath Power.
Checking accounts subject to approval, which may include credit approval. $100 minimum opening deposit required.
Mobile Banking: Message and data rates may apply. Check with your wireless carrier about such fees. Mobile Deposit® is subject to eligibility.
Merchant Mobility Pack: Merchant Services accounts subject to approval, including credit and risk approval, and the acceptance of the terms and conditions related to such service.
Samsung Galaxy Tab 3 Bonus: New BBVA Compass customers who open an e-Business checking account must complete 10 qualifying transactions within 30 days of account opening in order to be eligible to receive a Samsung Galaxy Tab 3. The Samsung Galaxy Tab 3 will be provided when all conditions are met.