Banks to increase 2012 technology spending in small business segment: Novarica study

Banks are increasing their focus on their small business customers, and planning to support this renewed focus with increased technology spending, according a new study by Novarica.

Research by Novarica shows that more banks are planning to increase their 2012 technology spending in the small business segment than in any other area.

The study also found that banks are also investing to develop their sales and service effectiveness for small business customers. This includes investment in the branch channel as well as following the trend to non-branch channels, particularly online and mobile.

Les Dinkin, partner at Novantas said this research confirms what we're hearing from bank retail and small business executives as they increase their emphasis on improving their retail customer mix. It will deepen customer relationships. Given this investment trend, we expect to see a significant ramp-up in bank small business go-to-market activities during 2012.

Matthew Josefowicz, partner and managing director of the Novarica division, said mid-size banks especially are investing aggressively in analytics, straight-through-processing, and social media for small business in 2012. Mid-size banks are looking at social media as a way to strengthen their close ties to their small business customers.

Novarica head of banking research Michael McEvoy said the investments in analytics and processing are critical to support small business lending. It's all about new technologies and data sources.