Direction Series  New From Synergistics

Overview

Free checking for small businesses is relatively new, but is generating increasing interest in the small business community as provider competition becomes more intense.  There are a number of considerations when promoting free checking for small businesses. [D68]

Strategic Questions

• Do small businesses believe that business checking pricing varies from institution to institution?
• To what extent do small businesses have free checking?
• What requirements are small businesses meeting to avoid fees?
• What requirements would small businesses accept for free checking?
• What level minimum balance requirement would small businesses accept for free business checking?
• To what extent do business and personal checking relationships overlap?
• What role does free personal checking play in the decision of where small businesses obtain a business checking account?

List of Exhibits

1. Perception of Pricing Variation Among Financial Institutions
2. Checking Account Pricing Among Small Businesses
3. Fee Avoidance Behavior
4. Acceptable Requirements for Free Business Checking
5. Minimum Balance Willing to Maintain
6. Incidence of Free Personal Checking at Business Checking Provider
7. Value of Free Personal Checking When Considering New Business Checking Provider
8. Likelihood of Switching Business Checking to Obtain Free Personal Checking
9. Small Business Market
10. Average Balance in Primary Checking by Sales Volume